Investors will invest regardless of who wins the US elections#Bitcoin He says it could soon reach six figures
According to Cnbce news; #Kripto Despite the increasingly partisan sentiment in the currency sector, Bitcoin will continue to grow in the long term regardless of who wins the US presidential election in November.
That’s a view that many crypto investors agree with as the wave of optimism spurred by former President Donald Trump’s bullish approach to cryptocurrencies this summer begins to wane.
“Do I think we’re going to be in six figures by 2025? Almost certainly. Do I think we’re going to be in six figures no matter who wins? Almost certainly,” said Steven Lubka, head of private clients and family offices at Swan Bitcoin.
“Bitcoin has always been an investment that is more based on the fiscal and monetary profile of countries, sovereigns and the United States,” Lubka added. “No candidate is changing that.”
Fears that a Kamala Harris presidency will somehow cap or lower the price of bitcoin are overblown, said James Davies, co-founder of crypto trading platform Crypto Valley Exchange. Crypto startups may face more challenges, but the sector will continue to struggle to move forward and thrive, he said. It also helps that bitcoin has become more institutionalized than ever, with the introduction of U.S. bitcoin exchange-traded funds this year.
“Some of our communities ... have become echo chambers and are convinced that if one side wins, the sky will fall,” Davies said. “The reality is that the market is robust, it is not U.S.-centric and it has not reacted negatively to major events on either side of the partisan divide.”
“This is not about the price of a global commodity, it’s about opportunities and regulation for US-based users,” he added. “Crypto must learn from traditional finance, lobby both sides, align with both sides, and succeed regardless of the election. If we want to build a great ecosystem, we can’t afford to be biased.”
Exaggerated risk
Lubka acknowledged that some observers have “exaggerated the risks of a Harris presidency” due to the hostility the industry has experienced during the Biden administration. However, “all the signs we’ve seen with Harris represent a continued de-escalation of the Biden-era crypto narrative.”
“The election results will have very little impact on bitcoin’s performance over the next 12 to 18 months,” said Tyrone Ross, founder and president of registered investment advisor 401 Financial. “There are still a lot of firms operating through ETF access, interest rate cuts are coming, and retail trading at central depository institutions is at its lowest. [It] will certainly be harder for young startups, but at the evolving institutional level, it will continue to prove itself as a quality asset, no matter who is in charge.”
After reaching an all-time high above $73,000 in March, Bitcoin has traded between $55,000 and $70,000 for most of 2024. Investors had expected the price to continue in this slump until U.S. voters choose the next president. However, election news has had less of an impact on Bitcoin’s price recently, which is more influenced by macroeconomic developments.
Bitcoin fell nearly 3% following the Harris-Trump debate on Tuesday night, but investors attributed that to positioning for interest rate updates in Japan and U.S. inflation data for August, which was released Wednesday morning.
Growing sense of partisanship
In recent months, the election was predicted to be an immediate catalyst for bitcoin, with many calling a potential second Trump presidency a boon for the industry. For example, the former president addressed the annual Bitcoin Conference in Nashville in late July, making a reference to it a priority in the Republican Party Platform. This week, analysts at Bernstein said bitcoin was the way to invest in a potential Trump presidency, and that the cryptocurrency could reach a new all-time high of around $80,000 if he wins on Nov. 5. But Bernstein said a Harris victory could push bitcoin toward $40,000.
“If Trump wins in November, will there be an immediate surge? Yes, absolutely. If Harris wins, could there be immediate selling pressure? It certainly wouldn’t surprise me. But in the medium term, I don’t think it’s dynamic,” Swan Bitcoin’s Lubka said.
Vice President Harris has not publicly spoken out on cryptocurrencies, but some in the industry are concerned that she has taken a stance against them and shares views that Sen. Elizabeth Warren (D-Mass.) and Securities and Exchange Commission Chairman Gary Gensler believe could hinder crypto adoption.
“There haven’t been any clear statements, but there’s been a history of bad things under the Biden administration… So I understand why people are paying attention,” Lubka said.
While there are concerns over the Biden administration’s stance on bitcoin, Lubka added, “I want to remind investors … that bitcoin has performed wonderfully under the current administration. It’s been one of the most successful assets in the world at a time when everyone was against it. Governments have traditionally been at least mildly hostile to bitcoin throughout its history, and bitcoin has performed extremely well.”
Bitcoin has been the best performing asset in all but three years since 2012.