As the U.S. presidential election approaches, Bitcoin hits new highs. Investors and analysts discuss the election's impact on the cryptocurrency.
The Role of U.S. Elections in Bitcoin's Movement
Bitcoin recently reached $73,000 amidst speculation surrounding the U.S. elections. Some investors suggest a Trump victory could boost the cryptocurrency, while a Kamala Harris win might lead to short-term volatility. However, analysts argue that the election's impact on Bitcoin might be overstated, highlighting longer-term drivers and vague policies from both candidates.
Bitcoin's Long-Term Prospects
Analysts at Bernstein project bright prospects for Bitcoin regardless of election outcomes. The firm reports that a Trump win might push Bitcoin to new highs, while a Harris victory could temporarily lower its price. Nevertheless, Bitcoin's resilience, backed by institutional interest, could see it doubling in value by 2025. Structural influences play a more significant role than short-term shifts.
Policy: Trump vs. Harris Approaches
Trump has shown interest in crypto by launching the World Liberty Financial project on Ethereum in 2024, advocating for U.S.-based Bitcoin mining. Kamala Harris, according to experts, might adopt a cautious stance. It's speculated that any administration could support the crypto industry through reforms or legislative actions, despite the limited economic influence of the presidency.
Despite election discussions, Bitcoin is set to strengthen its position through institutional investments and the growth of decentralized finance. Regardless of the elections, cryptocurrencies are increasingly becoming integral to the financial ecosystem.
