As the US Presidential Election approaches on November 5, 2024, financial markets, including cryptocurrencies like Bitcoin, are experiencing big changes. Investors and traders are preparing for ups and downs in the prices of Bitcoin and other digital assets, just like in past elections.
In the past, Bitcoin’s price usually went up after the election results were announced. Let’s explore how the election, the candidates, and other factors are influencing the future of Bitcoin and the overall crypto market.
Bitcoin’s Current Price and the Role of ETFs
In March 2024, Bitcoin reached a record high price of $73,798. This rise was partly because of increasing investments in exchange-traded funds (ETFs). ETFs make it easier for regular people and big institutions to invest in Bitcoin, leading to higher demand.
Investors are hopeful that the new president will bring softer regulations, making it easier for crypto businesses to grow. This excitement has been pushing Bitcoin prices higher.
The 2024 Election: A Big Impact on Crypto
The US Presidential Election always affects financial markets, including Bitcoin and other cryptocurrencies. Investors react to regulatory policies announced by candidates, which causes crypto prices to rise or fall.
In this election, the two main candidates are:
- Donald Trump (Republican candidate)
- Kamala Harris (Democratic candidate and current Vice President)
Trump’s Support for Crypto
Donald Trump is openly pro-crypto. He wants to make Bitcoin a strategic reserve for the US and turn the country into a global leader in cryptocurrency. This has excited many Bitcoin investors, who hope that Trump’s policies will make the US a friendlier place for digital assets.
Kamala Harris’s Approach to Crypto
Kamala Harris plans to introduce clear and organized crypto rules. She aims to give businesses and investors more clarity and reduce confusion about crypto regulations. This could help stabilize the market and bring more long-term trust to Bitcoin.
Both Trump and Harris want to make the crypto space better, but they have different ideas about how to do it. Trump wants fewer rules, while Harris focuses on building a strong regulatory framework.
Crypto Donations in the 2024 Election
Crypto companies and investors are spending a lot of money to support political campaigns. So far, they have donated over $190 million to different candidates.
- $130 million of these donations went toward elections for the House of Representatives and Senate.
- The goal is to elect politicians who support innovation and new technologies like Bitcoin.
Some key donations include:
- Chris Larsen, co-founder of Ripple, donated nearly $10 million to support Kamala Harris. He also gave $1 million in XRP (Ripple’s cryptocurrency) to her campaign fund.
- On the Republican side, candidates like Michelle Steel from California and Bernie Moreno from Ohio have also received millions in donations from crypto supporters.
A political action committee (PAC) supporting Trump raised $7.5 million in cryptocurrency donations. The money was given in Bitcoin, Ethereum, XRP, and stablecoins (like Tether and USDC).
Crypto Predictions for the Election
A crypto-based prediction platform called Polymarket shows that Trump is leading with 65.7% chances of winning, while Harris is at 34.4%. Many people are betting on election outcomes using cryptocurrencies.
Even though Trump is ahead, his chances of winning are lower in key states like Wisconsin and Michigan. Still, investors seem confident that Trump will win, which is influencing Bitcoin prices positively.
Bitcoin’s Performance in Past Elections
Looking at previous elections in 2016 and 2020, Bitcoin’s price went up significantly after both events:
- In 2016, Bitcoin was worth $700 during the election. By the end of 2017, it had jumped to $20,000.
- In 2020, Bitcoin was priced at $15,500 during the election. A year later, in November 2021, it hit $69,000.
This year, Bitcoin already reached a new high of $73,500 in March, months before the election. This is different from past patterns, where the price surged after the election.
Bitcoin ETFs Boosting the Crypto Market
In 2024, Bitcoin ETFs were approved in the US, allowing large financial institutions to invest in Bitcoin more easily. This has made Bitcoin more popular and boosted its credibility among investors.
In just six days before October 18, 2024, Bitcoin ETFs saw $2.4 billion in new investments. This shows that people are excited about Bitcoin’s future and are ready to invest heavily.
Bitcoin’s Current Price and Market Status
As of now, Bitcoin is trading around $67,700, and the total value of the cryptocurrency market stands at $2.39 trillion. Bitcoin makes up 55.8% of the entire crypto market.
Although Bitcoin’s price has not yet crossed the $69,000 resistance level, many analysts believe it will hit $100,000 soon, especially if the election brings more positive news for the crypto industry.
Final Thoughts: A Bright Future for Crypto
No matter who wins the 2024 US Presidential Election, it looks like the US will have a crypto-friendly government. Both Trump and Harris have shown interest in supporting the crypto industry, though their approaches are different.
Crypto donations and support for political candidates are growing fast, which is increasing awareness about Bitcoin and digital assets among lawmakers.
If things go well, Bitcoin could reach new all-time highs, and the crypto market could enter another exciting growth phase. All eyes are now on November 5, 2024, to see how the election results will shape the future of Bitcoin and other cryptocurrencies.