With Trump and Harris supporting crypto, the industry may boom pre-election
Political Crypto Flywheel Effect
Harris seems to support bitcoin in a larger trend. We call this the “crypto flywheel of politics”:
One candidate supports crypto: Donald Trump has publicly supported crypto.
Crypto markets rally—This early support boosts market activity and industry awareness.
Crypto becomes increasingly relevant to voters as markets rise, forcing it into political discussions.
Kamala Harris, the opposition contender, seems to be responding to criticism by embracing crypto.
The opposition caves—Harris, like many politicians, has tailored her position to voter enthusiasm in crypto.
Crypto markets rise again with both candidates.
Crypto becomes a major election topic as it rises.
Trump and Harris strive to outdo one other in crypto support to gain voters.
Crypto becomes a major election topic for millions of voters as the market goes stratospheric.
Voters concentrate on which candidate can boost the market for financial rewards, making the election crypto-driven.
Could Crypto Boom Cause Post-Election Correction?
Harris' new position suggests a pre-election boom. She and Trump now have a stake in becoming pro-crypto leaders. Thus, crypto-positive discourse will increase before the election. Many believe this is the start of a long-term rise as markets react favorably.
However, hazards exist. The crypto market regularly corrects after short-term political news hypes. Experts say crypto whales and political factors may support the market today, but this might alter after the election.
What Follows the Election?
Before the election, the political flywheel may help crypto, but post-election concerns are mounting.
Conclusion: Short-term gains, long-term uncertainty
Political endorsements are now fueling the crypto community. Kamala Harris and Donald Trump's backing has boosted the business, but long-term stability is uncertain. After the election, political pledges may change, causing a dramatic market correction.
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