The 2024 U.S. presidential election promises to bring significant changes to the cryptocurrency market, as the country's policies, economic strategies, and political choices could profoundly impact this market. According to current data, the cryptocurrency community believes that Trump's ideas are presented in more detailed and comprehensive ways compared to Harris.
The cryptocurrency market is inherently sensitive and easily affected by political situations. Each election is a time when traders need to be cautious, as volatility can increase and become unpredictable. With the U.S. presidential election, few global events can match the level of influence on the cryptocurrency market and international markets in general.
The Future of the Cryptocurrency Market if Donald Trump is Elected
First, let's consider how candidate Donald Trump could influence the cryptocurrency market. It seems that support for Trump within the crypto community comes from his public plan to implement cryptocurrency-friendly policies.
At the Bitcoin conference in Nashville on July 27, Trump proposed the idea of building a national strategic Bitcoin reserve to position the U.S. as a leader in cryptocurrency adoption. He also expressed his intention to establish a presidential advisory committee focused on Bitcoin and other cryptocurrencies to create clearer regulations.
Additionally, Trump has criticized the current administration's approach to cryptocurrency regulation, expressing a desire to remove Gary Gensler, the current chairman of the U.S. Securities and Exchange Commission (SEC).
In September, the increasing involvement of the Trump family in the cryptocurrency market was evidenced by his sons, Donald Trump Jr. and Eric Trump, establishing the exchange World Liberty Financial (WLFI).
Kamala Harris's Predictions for the Cryptocurrency Market
Vice President Kamala Harris, who is also a candidate for the presidency, has made several statements showing support for the cryptocurrency industry. However, she is less outspoken than Trump.
In a statement in August, Harris emphasized the need to build comprehensive regulations that encourage innovation while protecting consumers. She also recognized the potential of blockchain technology in various fields.
At a fundraising event on September 22 at Cipriani Wall Street, Manhattan, Harris expressed her desire to promote breakthrough technologies such as artificial intelligence and digital assets while protecting investors and consumers.
In October, she announced her intention to create investor protection regulations for digital assets and cryptocurrencies. Throughout her campaign, Harris has had conversations with prominent figures in the cryptocurrency industry about the future of digital assets, showing that she is willing to listen and may incorporate these ideas into her agenda.
The Effect of U.S. Elections on the Cryptocurrency Market
To understand better, we can look back at previous U.S. presidential elections and see how the cryptocurrency market was affected.
After Trump was elected on November 8, 2016, Bitcoin experienced a slight decline of 5.5% in five days. However, after the initial drop, Bitcoin and altcoins quickly recovered.
In contrast, on November 4, 2020, when Joe Biden won, Bitcoin rose more than 22% in the eleven days following, which many believe would have happened regardless of the election outcome. However, the driving conditions were due to economic support policies and reduced interest rates as the global economy was heavily impacted by the COVID-19 pandemic.
The cryptocurrency market will face significant volatility during the election
With limited data from the two recent elections, it is clear that the cryptocurrency market is very sensitive to political volatility. Changes in laws, new regulations, and statements during the campaign have a significant impact on trader behavior.
It is expected that the cryptocurrency market will experience significant volatility when the final election results are announced, influenced by the community's perceptions of future support or restrictions. The cryptocurrency community is eagerly awaiting the new administration's views on digital assets, hoping that the election results will bring positive outcomes for the industry.
