The results of the US elections could have significant impacts, especially on altcoins. However, regulatory uncertainties are thought to be the main factor in this interaction rather than Bitcoin’s performance. A recovery process supported by macroeconomic conditions could present new opportunities for altcoins.
Altcoins have performed weaker than Bitcoin throughout 2024, and regulatory uncertainty is the main reason for this. The latest report by K33 Research states that the US elections and regulatory stances towards digital assets could have a greater impact on smaller cryptocurrencies, especially those other than Bitcoin.
The Strength of Bitcoin and the Sensitivity of Altcoins$BTC
K33 Research analysts Vetle Lunde and David Zimmerman stated that Bitcoin will continue to remain in a strong position in the medium term, regardless of the election results, thanks to its wide reach and features. However, the situation is different for altcoins. Analysts emphasized that elections can create more uncertainty on altcoins and complicate market dynamics.
Elections Could Be a Turning Point for Altcoins
David Duong, Research Director at Coinbase, one of the largest cryptocurrency exchanges in the US, said that the elections could be a potential turning point for altcoins. “I think with the elections, altcoins will get more attention and Bitcoin’s dominance will plateau here,” Duong said in an interview with CoinDesk.
Duong also stated that a generally positive macroeconomic environment will support crypto markets in the first half of 2025. He expressed his view that altcoins could gain more momentum during this period, arguing that the outcome of the elections will benefit the sector regardless of who wins.
In conclusion, the US elections could be a significant turning point for altcoins, especially in light of regulatory uncertainties and macroeconomic factors related to the sector. Along with Bitcoin’s strong position, new opportunities and risks may come to the fore for altcoins. Investors are likely to continue to closely monitor regulatory developments and election results in the sector during this process.
