Harris-Trump debate: How the U.S. election may impact bitcoin and other crypto prices
Bitcoin may rally regardless of who wins the election, one analyst says
Crypto-market participants are unsettled on how the U.S. presidential election in November might impact bitcoin and other digital-asset prices, as Vice President Kamala Harris and former President Donald Trump are scheduled to debate for the first time on Tuesday night.
Whether Trump or Harris wins the election, the next administration is likely to be bullish for bitcoin (BTCUSD), said Matthew Sigel, head of digital-assets research at investment manager VanEck, in an interview with MarketWatch.
Economists and policy watchers are expecting the federal budget deficit to grow significantly regardless of who wins the presidential election in November. Bitcoin bulls have argued that the crypto has the potential to be used as a hedge against expansionary monetary policy and against a weakening dollar DXY, thanks to characteristics such as a fixed maximum supply of 21 million.
"We believe a crypto-friendly election outcome and positive regulatory environment is not priced in," the analysts wrote, arguing that a Trump administration would provide a much more supportive regulatory environment for crypto. "A positive regulatory environment would take away the policy risk for financial institutions and banks to participate [in the crypt market], thus removing the handicap for digital assets to compete with traditional assets for institutional flows."
What matters more to the crypto sector than who wins the election is whether or not the White House and Congress will be controlled by the same political party, according to Zach Pandl, head of research at Grayscale Investments.
If so, it is likely that the U.S. will see widening budget deficits, which would be bullish for crypto, Pandl said in an interview.
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