How will the cryptocurrency market change if US President Joe Biden gives up re-election? Some industry experts believe that this will be a "big plus" for Bitcoin and altcoins; however, some analysts warn that the U.S. election situation is still full of variables and investors should "don't get too excited."
Cryptocurrency’s ‘big win’
Josh Gilbert, a market analyst at eToro, said that Biden’s withdrawal from the election is a “big victory” for cryptocurrency, and the increased probability of Trump’s election will also significantly boost the asset class. He said: “Trump’s momentum is ahead of others. The longer the opponent holds out, the more cryptocurrency will price his victory."
It's hard to imagine how Kamala Harris or any other Democratic candidate could flip Trump's lead with just three months left in the election, but a lot can happen in that time to completely rule anything out. sex.
Looking to the future, Josh Gilbert still expects the price of Bitcoin to go higher. He also mentioned that the upcoming Ethereum spot ETF will be listed in the United States as a major catalyst for the growth of the entire cryptocurrency market.
If Trump is elected, will he adopt Bitcoin as a national reserve asset?
Markus Thielen, founder of 10x Research, mentioned that Trump may announce at the upcoming "Bitcoin Conference" that he will adopt Bitcoin as a strategic reserve asset of the US government. In his latest report, he stated:
Market speculation is that he will declare Bitcoin a strategic reserve asset, which may trigger a "parabolic" rise in Bitcoin. Taking profits before Trump's speech, or even shorting Bitcoin, may lead to "expensive lessons."
According to statistics from Markus Thielen, the U.S. government currently holds 212,800 Bitcoins (worth approximately US$15 billion) and gold reserves of approximately US$600 billion. Assuming that it doubles its Bitcoin holdings, it means that the market will A new wave of funds has entered the market, and the scale is "almost equivalent" to the net inflow of the Bitcoin spot ETF since its listing - US$17 billion.
"Don't get too excited"
However, Swyftx analyst Pav Hundal warned that although Biden's withdrawal may increase Trump's chances of winning, it is difficult to directly link this incident to the rebound in the cryptocurrency market.
"Learning from the experience of Bitcoin ETFs, we may see the rally stall temporarily before moving higher," he said.
The recent rise may be attributed to the Ethereum spot ETF theme, and investors should remain cautious and not get too excited in the short term.
Presto, a Singapore-based cryptocurrency research company, pointed out: "Biden's withdrawal brings a new possibility: No matter who ends up in the White House, the U.S. government is bound to take a more constructive approach to the digital asset industry after November. manner."
Lucy Hu, senior analyst at Metalpha, said: "We expect the market to strengthen because Trump's main economic policy will be to cut interest rates and reduce borrowing costs. This will undoubtedly push up all risk assets, including Bitcoin." She added:
In the medium to long term, we expect Bitcoin to continue rising.
〈Biden is not elected! Cryptocurrency welcomes "big benefits"? Let’s see what analysts say> This article was first published on "Block Guest".
