Bitcoin is standing firm at $73,000, nearing a possible new record high.
This happens just one week before the U.S. elections, an event many Bitcoin traders expect will bring positive market energy, no matter whether Trump or Harris wins.
Eric Beiley, a director at The Beiley Group, shared in an interview with Quartz that Bitcoin’s rise could hint at a possible win for Donald Trump. However, only time will tell who will become the 47th president of the United States.
Some are already guessing how Bitcoin might react if Donald Trump or Kamala Harris takes the victory.
Trump’s victory impact on Bitcoin
Former President Donald Trump has embraced cryptocurrencies in his campaign, even accepting donations in Bitcoin, Ether, Dogecoin, and Solana. His pro-crypto stance has caught the attention of many in the crypto community.
At a recent Bitcoin conference, Trump pledged to remove SEC Chair Gary Gensler, whose policies have been unpopular in the crypto world, and proposed creating a national Bitcoin reserve. While details are scarce, his focus on Bitcoin has stirred enthusiasm.
Imagine being so ignorant and money hungry that even as your campaign is struggling to raise money (Harris brought in 4X as much last month), you start selling a stupid overpriced coin to cannibalize your own supporters’ money.
— Brian Krassenstein (@krassenstein) September 22, 2024
A Trump win could boost Bitcoin’s price in the short term, though its longer-term outlook under his leadership remains uncertain.
Chandra Duggirala, CEO and co-founder of Portal To Bitcoin, suggests a Trump victory might shape Bitcoin’s long-term future in unique ways.
If the U.S. government begins holding Bitcoin under Trump, wealth managers may start seeing it as a credible investment. This shift could lead to broader Bitcoin adoption in traditional financial portfolios, Duggirala explained in an email to Quartz.
Harris’ victory impact on Bitcoin
Vice President Kamala Harris has recently started speaking more openly about cryptocurrencies, calling for stricter regulations to protect consumers and maintain financial stability. Many expect her cautious stance on Bitcoin could cause an initial price drop if she wins, with a potential rebound afterward.
Duggirala said a Harris win would likely mean a continuation of current economic policies, including higher fiscal spending and progressive taxes, with increased regulatory focus on private capital and the crypto markets. This approach may lead to tighter oversight of the cryptocurrency space.
Duggirala highlighted that if inflation remains high and regulatory pressure continues, assets like Bitcoin and gold could attract investors looking to protect their wealth.
“The scarcity-driven value of Bitcoin could position it as a top choice for those aiming to safeguard their wealth in a potentially inflationary landscape,” he said.
Polls suggest a close race between Trump and Harris, potentially leading to a contested and litigated outcome.
During uncertain times, volatile assets typically experience increased trading, which benefits derivatives traders. Bitcoin, known for its price fluctuations, could become a favored asset for options traders aiming to profit from anticipated price swings, according to Duggirala.
