Cryptocurrencies saw a slight increase as investors awaited the outcomes of the US presidential election.
Bitcoin According to Coin Metrics, the value rose 3% to $70,053.56. ether was up 2% at $2,473.40. The token that’s sure to Solana increased by greater than 5%. Meanwhile, memecoins Dogecoin and the Shiba Inu coin rose 12% and eight%, respectively.
The price of Bitcoin has increased Microstrategywhich is usually traded as a high beta currency to the Bitcoin price, in addition to several mining stocks including Mara Holdings, Riot Platforms And CleanSpark. Coinbase increased by about 1%.
The race between Vice President Kamala Harris and former President Donald Trump for the following presidency is being called an important election within the lifetime of the crypto industry. Many view a Harris victory as a threat to cryptocurrency – the extent of which has been debated this election cycle. Trump, then again, is seen by many as a driving force within the industry after presenting himself as a pro-crypto candidate earlier this 12 months and courting the industry more directly than Harris.
Regardless of the eventual winner, Bitcoin is prone to survive and thrive, in response to Bernstein analyst Gautam Chhugani.
“Bitcoin continues to be the most resilient cryptocurrency to election results,” he said. “Bitcoin’s main drivers remain US fiscal indiscipline, record debt levels and monetary expansion, which is driving demand for hard assets like gold and Bitcoin. We believe that Bitcoin, which accounts for less than 0.1% of global financial assets, has enough room for growth regardless of the outcome.
Chhugani has a price target of $200,000 for Bitcoin in 2025, although he said Bitcoin could fall to $50,000 in the coming weeks in the event of a Harris victory. In the event of a Trump victory, he also expects a short-term increase to up to $90,000 this year.
The success around Bitcoin ETFs, which have seen more than $23 billion in inflows this year and have $67 billion in assets under management, will further accelerate the cryptocurrency's development, Chhugani added.
But it is the broader cryptocurrency market that could be at greater risk in this election.
“A constructive, crypto-friendly SEC would open up opportunities for all crypto assets beyond Bitcoin,” he said. “The key remains bipartisan support for crypto regulations (the outcome of the House and Senate is also important). And…if one side pushes for a crypto-friendly SEC. The Trump side has promised a crypto-friendly SEC, while the Harris side has promised that we will defend ownership of crypto assets, although the crypto community would have preferred a more specific crypto policy from Harris.”
Increasingly, there may be a growing consensus that while Trump could also be broadly the more favorable of the 2 candidates for crypto, a Harris presidency will not be as damaging as once feared. This fear stems from the hostility towards cryptocurrencies under the present administration – the Securities and Exchange Commission under Gary Gensler is notorious for refusing to supply clear guidelines for cryptocurrency firms that wish to comply with the principles and as an alternative has opted for regulation through enforcement motion; and Sen. Elizabeth Warren, D-Mass., has been vocal about her anti-crypto cause.
image credit : www.cnbc.com