The upcoming US presidential election has become a focal point for the cryptocurrency sector, with industry experts noting that its outcome may significantly shape global crypto regulation and market dynamics.
With around 40 per cent of Americans reportedly holding cryptocurrency, the US is now seeing crypto become a mainstream election issue, according to Mudrex Co-founder and CEO Edul Patel. Both major parties are signalling support for clearer crypto regulations, which many believe could bring much-needed stability and attract more institutional investors.
“The US is a quite mature market when compared to others. More than 40 per cent of Americans hold crypto in some or the other form. This is pivotal as the nation gears up for elections where crypto takes centre stage for the first time. Unlike past elections, both major parties are advocating for clearer, supportive regulations. With a large chunk of the population engaged, establishing regulatory certainty is crucial. Given the US’s significant economic influence, its regulatory decisions may shape global crypto policies, potentially fuelling Bitcoin’s momentum during this election cycle. Building on this momentum, Bitcoin is well-positioned to touch the $100,000 mark in the near term, regardless of the election outcome,” Patel commented.
Market reaction: Bullish or Bearish?
Historically, US elections have a profound effect on financial markets, and experts anticipate that the cryptocurrency market will be no different this year. Balaji Srihari, Business Head at CoinSwitch, suggests that depending on the candidate who wins, the market may react with volatility.
“Market reactions are often swift and volatile in response to perceived election outcomes, and the 2024 race is already showing signs of this trend. If Trump’s pro-crypto rhetoric continues to resonate with voters, it could spark bullish sentiment, with investors anticipating a more favourable regulatory environment for digital assets. On the other hand, a Harris administration that leans toward increased regulation could trigger bearish trends as the market adjusts to the possibility of stricter oversight.”
Srihari further noted that crypto market volatility could spike as election day nears, with investors possibly adopting risk-averse strategies. This uncertainty could lead to swings in major tokens like Bitcoin and Ethereum.
Shivam Thakral, CEO of BuyUcoin, pointed out that younger, more diverse voters are increasingly interested in cryptocurrency. This demographic shift could be key as both Trump and Harris have signalled openness toward crypto.
“The crypto market has been buzzing with anticipation as the US presidential election approaches, with Bitcoin and Ethereum facing slight declines. However, Dogecoin has surged impressively by 7.26 per cent, driven by renewed investor interest and positive sentiment surrounding its community”
Ryan Lee, Chief Analyst at Bitget Research, noted that the election’s impact could vary over time, with the possibility of immediate market confidence gains if a crypto-supportive candidate wins, while longer-term effects would likely focus on balanced regulation to stabilise the market.
“The 2024 U.S. presidential election could impact the cryptocurrency market differently in the short term and in the long term. Different candidates have varying regulatory stances on cryptocurrency, which may lead to market volatility. In the short term, if the elected candidate is supportive of crypto, it could boost market confidence and surge market price“.
Amit Malik, President of JAPA (Japan, Asia Pacific, and Australia) at WadzPay, expressed confidence in the digital assets market’s resilience beyond any single election, highlighting the potential of stablecoins and blockchain technologies in global finance.
The upcoming US presidential election is pivotal for the cryptocurrency sector, potentially influencing global crypto regulation and market dynamics.
[Source: BusinessToday]
