As the U.S. presidential election approaches, Bitcoin has reached a remarkable $73,000. But are political events the primary driver for its future?
The "Trump Trade" Narrative: Misplaced or Momentous?
Some crypto enthusiasts believe Trump's victory could create favorable conditions for Bitcoin through tax cuts and protectionist policies. However, analysts suggest this view may be exaggerated. Alex Tapscott points to a weak correlation between Trump's election odds and Bitcoin pricing, questioning the significance of political factors in the cryptocurrency market.
Bitcoin’s Long-Term Prospects: More Than Just an Election Bet?
Bernstein analysts predict that Bitcoin will continue to grow regardless of the election outcomes. They argue that Bitcoin's long-term development is driven by fundamental factors such as the popularity of Bitcoin ETFs and the influx of institutional capital.
Policy Divergence: Trump’s Crypto Pivot vs. Harris’ Possible Caution
Trump's recent interest in cryptocurrencies has raised both curiosity and concern. He launched the World Liberty Financial project on Ethereum, indicating a newfound interest in decentralized finance. Conversely, Kamala Harris may adopt a more cautious stance toward cryptocurrencies, especially amid regulatory tensions with the SEC. Nevertheless, the presidential impact on cryptocurrencies remains limited.
While political events may temporarily affect cryptocurrency prices, Bitcoin’s long-term prospects are driven by more fundamental issues. Its ultimate resilience relies more on institutional investments and technological advancement than political fluctuations.
