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Bitcoin price could rise or fall based on Donald Trump vs. Kamala Harris

Bitcoin price could rise or fall based on Donald Trump vs. Kamala Harris

Bitcoin is holding strong at $73,000, a potential new all-time high Just a week before the US election – an event that many traders expect will boost market optimism regardless of the outcome.

Eric Beiley, managing director of the Beiley Group at Steward Partners, Quartz said In a recent interview, he said that Bitcoin's rise indicates a possible election victory for Donald Trump, but only time will tell who will be the 47th President of the United States.

Many are already speculating about how Bitcoin might react to a possible victory for Donald Trump or Kamala Harris. Debates arise about which outcome would be more favorable for the cryptocurrency in the long term. The growing engagement on both ends of the political spectrum underscores how crypto has become a contentious and central issue in the 2024 elections. Here's what you need to know:

What will happen to Bitcoin if Trump wins?

This election year, former President Donald Trump positioned himself as a “crypto candidate” and actively promoted digital assets as part of his election campaign. Even him began accepting campaign donations in various cryptocurrencies, including Bitcoin, Ether, Dogecoin and Solana, among others.

Of course, not all crypto enthusiasts are Trump supporters, but many welcome his recent pro-crypto stance. For example, At a Bitcoin conference, Trump promised firing SEC Chairman Gary Gensler on his first day in office — a move that resonated widely with crypto advocates, as Gensler's policies were often unpopular in the cryptosphere. Trump kept promising Establishing a national Bitcoin reservean ambitious goal that has intrigued many in the crypto community. Although he has not provided the details or timeline for such a move, the fact that he has made Bitcoin a central talking point in his campaign has caused considerable excitement.

Taking these factors into account, it is clear that a Trump victory could lead to an immediate increase in the price of Bitcoin, which would boost the entire crypto market. Still, it's hard to say what Bitcoin's long-term trajectory would look like under a Trump presidency.

Accordingly Chandra DuggiralaCo-founder and CEO of the interoperability-focused crypto platform Portal to Bitcoina Trump victory could have different effects on Bitcoin in the long run. If Trump wins and the U.S. government starts actively holding Bitcoin, money managers could start viewing it as a credible asset, which could accelerate Bitcoin adoption in traditional portfolios, he told Quartz in an email.

“This newfound confidence could lead to increased inflows into Bitcoin funds and related investment products, driving up demand and potentially the market price,” he added. “The ripple effect could lead to a rise in Bitcoin prices as global investors follow the US lead in integrating Bitcoin into mainstream financial portfolios.”

What happens to Bitcoin if Harris wins?

On the other hand, Vice President Kamala Harris, who had done that So far I have been cautious about the discussion Cryptocurrencies, lately has begun to address the issue more openly. She demanded stronger regulatory oversight of the crypto market, Stressing the need for clear rules to ensure consumer protection and financial stability.

Given Kamala Harris' late and lukewarm reaction to Bitcoin, Many assume that if the leading cryptocurrency wins, the price will immediately dropfollowed by a possible rebound later.

Duggirala told Quartz that a Harris victory would likely mean a continuation of the current administration's economic policies of increased government spending and progressive taxation. A Harris administration could also introduce stricter regulatory controls, particularly regarding private capital and the crypto markets.

Duggirala noted that assets like Bitcoin and gold could benefit if high inflation continues alongside continued regulatory pressure, as investors look for ways to preserve their wealth amid these challenges.

“Bitcoin’s scarcity-driven value could make it the first choice for those looking to protect their wealth in a potentially inflationary landscape,” he said.

What happens to Bitcoin if there is a disputed election?

Many Polls suggest a close race between Trump and Harriswhich could lead to an election result fraught with controversy and litigation. During times of increased uncertainty, assets with high volatility often see increased trading volume, which benefits derivatives traders. Because of its historical price fluctuations, Bitcoin could become a preferred asset for options traders looking to capitalize on potential price swings, Duggirala noted.

“During times of market crisis, Bitcoin has shown a tendency for strong price movements, both up and down,” he said. “In March 2020, at the height of the pandemic market crash, the price of Bitcoin collapsed by almost 50% in a matter of days, only to recover and rise to new all-time highs within a few months.”

If the election results in continued uncertainty, options trading on Bitcoin could prove extremely profitable. Historically, Bitcoin futures and options volumes increased during times of increased market volatility, as seen during the bull market from late 2020 to early 2021, Duggirala told Quartz.

For experienced traders, a contentious election represents an excellent opportunity to take advantage of Bitcoin's volatility and pay more attention to Bitcoin markets worldwide, he added.

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