It's less and less until 5 November, the day when the United States will go to the polls (at least officially, many opted for the early voting formula that gave people the chance to express their preference even before Halloween) to elect their new president. The challenge between Donald Trump and Kamala Harris has inevitably also involved the world of cryptocurrencies, with both challengers expressing a certain openness towards the decentralised finance.
With the election fast approaching, numerous analysts have voiced their predictions as to what will happen from 6 November onwards, and have come to the conclusion that, for the entire cryptocurrency sector, a victory for the tycoon could represent a real dopamine rush. Thus expressed Pav Hundal, lead analyst at Swyftx. This is, of course, not a political endorsement, but a prediction about which president would be more concessive towards the development of the entire ecosystem, should he win.
Analysts warn of crypto market volatility around U.S. election
- CoinNess Global (@CoinnessGL) October 30, 2024
Crypto analysts suggest that a Donald Trump victory in next week's U.S. election could boost the crypto market, but they also warn of increased volatility around Election Day, according to Cointelegraph. Swyftx lead...
What We Can Expect In Case Of Trump's Victory
We must not decontextualise the thinking of Hundal and the many experts who think along the same lines as he does. The reasoning on Trump's triumph is part of a broader reasoning, which foresees for the last quarter of 2024 a strong volatility in cryptocurrency values, linked mainly - but not only - to electoral uncertainty.
According to the founder of Derive, Nick Forster, this is a time in which caution should be exercised:
"Traders should tread carefully. On the one hand, there could be upside following the Republican victory, on the other hand, risks still remain significant."
Forster's warning is due to the movements that are already beginning to be seen in the markets, although we are still a few days away from the election date (and even longer from the actual presidential inauguration, which will take place in January), to one analyst, in fact, the trend seems quite clear:
"The increase in call buying signals that some traders are indeed betting on a bullish outcome, expecting a buy the rumor type scenario. However, there are no certainties yet, only hunches. Reality could quickly veer towards a sell the news, depending on the actual results of the election."
Will Trump Bring BTC to Surpass 100,000?
Bitcoin's growth forecasts, which always leave time to be found given the cryptocurrency's extreme volatility, indicate that BTC will reach the $100,000 mark sometime between 2025 and 2026. It should therefore fall during the presidency of whoever wins the next election. The victory of Trump or Harris, however, is unlikely to affect this. Dan Tapiero, of 10T Holdings, reiterated that the crypto queen will reach six figures, and that it will do so regardless of who sits in Washington. According to him, it could already happen by the end of 2024.
The value of BTC and, a fortiori, of other cryptos, will in no way be tied to the electoral turn. Those who hope for a Republican triumph do so more on the basis of the electoral strategies of Trump, who has recently shown himself very close to the DeFi sector, where there are numerous votes to be intercepted. The category of crypto enthusiasts could prove to be very important in an election where there is no clear favourite and it is important to gain every single preference.
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