Here's How a Democratic Victory Could Affect the Cryptocurrency Market
Heading into the final stretch of the 2024 presidential campaign, the Republican Party appears to have the upper hand with pro-crypto voters. Former president Donald Trump has outlined a pro-Bitcoin (CRYPTO: BTC) agenda, even going so far as to proclaim that he wants America to become the "crypto capital of the planet."
In contrast, the Democrats don't appear to be offering much of anything. In fact, there's no mention of "crypto" or "digital assets" anywhere in the 91-page Democratic party platform. The Biden-Harris administration has largely been viewed as anti-crypto, and some of the names that are being floated as potential economic advisors in the Harris-Walz administration are also viewed as skeptical of the cryptocurrency movement. With that in mind, here's how a Democratic victory could impact the cryptocurrency market.
A Democratic victory could put a cap on just how much higher Bitcoin might go during the current market cycle. Right now, the current consensus is that Bitcoin has the potential to double in price to anywhere from $100,000 to $150,000 by the end of 2025. But that robust forecast, based in part on the assumption of Trump defeating Biden, could change now that a Democratic victory is looking much more likely with Kamala Harris as the party's candidate.
It's not so much that the Harris administration is going to crack down on crypto, or that they are going to adopt anti-Bitcoin policies. It's that they are not planning to do anything new. Unless some new development forces the Harris administration's hand, that means no new comprehensive regulatory framework for crypto, no new tax policies to encourage crypto investing, and no new fiscal policies to stimulate Bitcoin mining.
This last point is worth particular attention, given that the Biden-Harris administration has generally tended to view Bitcoin mining as energy-inefficient and a drag on the nation's power grid. In September 2022, for example, the White House released a comprehensive report.
