Today, everyone is watching the US presidential election closely. This election could lead to big changes in cryptocurrency rules and policies in the US. Along with choosing a new president, Americans are voting on 435 House seats and 34 Senate seats, which means there could be changes in the balance of power. The cryptocurrency world is keeping a close eye on the election, as it could affect the future of digital money.
Why Bitcoin Prices Might Be More Volatile
As Election Day approaches, experts think Bitcoin’s price might swing up and down a lot. This is because, in the past, big news events like elections have made Bitcoin’s price react in unexpected ways. People often buy or sell a lot based on news, which causes prices to rise or fall suddenly.
The 2024 Election and Crypto Regulation
Cryptocurrency has become a hot topic in the 2024 US election. Many Americans and politicians are paying more attention to digital money and how it should be regulated, or controlled by law. Because of this, both presidential candidates have shared their ideas on cryptocurrencies and the future of digital money.
The Candidates: Kamala Harris vs. Donald Trump
In the final days before the election, Democrat Kamala Harris and Republican Donald Trump are wrapping up their campaigns in key states. Both of them have strong opinions on cryptocurrency.
- Donald Trump: Trump wasn’t always supportive of cryptocurrency, but he’s now seen as a fan of digital money. He says he wants the US to become a global leader in cryptocurrency. Trump doesn’t support the idea of a “central bank digital currency,” which would be a type of digital money controlled by the government. Trump’s campaign even accepted crypto donations, showing he has the support of crypto enthusiasts.
- Kamala Harris: Harris recently spoke about cryptocurrency for the first time at a Wall Street fundraiser. She promised that if she is elected, she will work on making sure there are clear rules for new technologies, including digital money and artificial intelligence. She wants to create a safe and stable environment for businesses.
Crypto-Based Prediction Markets Show Trump in the Lead
Some people are using cryptocurrency-based platforms to predict the election outcome. One popular platform, Polymarket, allows people to bet on who will win. Right now, Polymarket shows that Trump is in the lead with a 62.3% chance of winning, while Harris is behind at 37.8%. This kind of platform has become popular with people interested in both crypto and politics.
More News Affecting Crypto Prices: The Federal Reserve Meeting
The US Federal Reserve (often just called the Fed) is also holding a meeting this week, which could affect the cryptocurrency market. The Fed sets interest rates, and many experts believe they will cut interest rates slightly, by 0.25%, because of slowing job growth in October. A rate cut often makes investors feel more positive about risky assets like cryptocurrency.
Bitcoin Price Swings Expected During the Election
As the election nears, Bitcoin prices are expected to be quite volatile. This means that the price of Bitcoin might go up and down sharply. Some experts believe that after the election, the price will go back up, which has happened in past elections. Bitcoin has already gone through some ups and downs this week. It hit a low of $66,835 but is now trading at about $68,870. Overall, the market value of all cryptocurrencies together is around $2.39 trillion.
Another important detail is that Bitcoin ETFs (exchange-traded funds, which are similar to stocks) have seen large outflows recently. On November 4, investors took out $541 million from Bitcoin ETFs, the second-highest amount ever withdrawn in a single day. This sell-off followed an even bigger one on May 1. A large portion of these outflows came from Fidelity’s FBTC fund.
Bitcoin’s Historical Growth After US Elections
After past US elections, Bitcoin’s value has usually gone up. From 2012 to 2016, Bitcoin’s price increased by 70%, and from 2016 to 2020, it rose by 87%. Some analysts think that if this trend continues, Bitcoin’s price might rise by about 40% after the 2024 election. This could push Bitcoin’s price to around $105,000 in 2025.
What the Election Outcome Could Mean for Bitcoin Prices
Depending on the election result, Bitcoin’s price could move in different ways. Experts think that if Trump wins, Bitcoin could reach around $90,000. But if the price drops and falls below $65,000, it might lead to more people selling, which could push the price down to about $60,000.
Conclusion: What’s Next for Bitcoin and Crypto in 2024?
The end of the year is often a good time for Bitcoin, and a possible interest rate cut could help the overall cryptocurrency market recover. The mix of supportive financial policies and the excitement around the election could mean a positive future for cryptocurrencies in 2024. However, it’s important for investors to stay cautious, as the crypto market can be unpredictable, especially during times of political change.
In summary, the 2024 US presidential election could have a major impact on the cryptocurrency world, and many are watching closely to see what happens next.