Institutional Adoption Drives Bitcoin Further

According to a recent report by VanEck, Bitcoin’s global influence continues to grow as more institutions and countries begin to adopt Bitcoin (BTC). The report pointed out that compared with last year, the market's attention to Bitcoin has grown significantly, especially with the listing of spot ETFs for Bitcoin and Ethereum, and the participation rate of institutions has increased significantly.

Data from VanEck shows that Bitcoin’s trading volume is up 173% year over year, far outpacing the stock market’s 18% growth. This shows that Bitcoin adoption is gradually shifting to large-scale institutional and national levels, especially as some countries start to get involved in Bitcoin mining and cross-border trade. The report highlights that these trends will further cement Bitcoin’s status as a store of value.

VanEck analysts pointed out that this phenomenon is not just a short-term trend. As more countries adopt Bitcoin for currency and trade transactions, Bitcoin’s potential as a global reserve asset is gradually emerging.

2024 US presidential election: Harris Harris could be the driving force behind Bitcoin?

The U.S. presidential election has always had an important impact on financial markets, and the cryptocurrency market is no exception. Republican candidate Donald Trump calls himself the "crypto president" and actively supports the encryption industry, while Democratic Vice President Kamala Harris holds a more conservative attitude towards cryptocurrency.

However, according to VanEck’s analysis, Harris’ election may have a positive impact on the Bitcoin industry. Matthew Sigel, head of digital asset research at VanEck, and analyst Nathan Frankovitz said that although Harris and Trump both have a positive attitude towards Bitcoin, Harris' fiscal policy may be more conducive to promoting the long-term growth of Bitcoin.

VanEck's report mentioned that if Harris is elected, she is likely to retain the position of current U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler and promote stricter financial regulatory policies. Such a policy may affect the development of other digital assets, but for Bitcoin, VanEck believes that it will help accelerate Bitcoin adoption. Bitcoin's "non-sovereign" and "anti-censorship" characteristics will become more prominent under this circumstance, attracting more institutional investors seeking transparency and stability.

Trump or Harris: Who is better for the crypto market?

Although VanEck believes that Harris' election will have a positive impact on Bitcoin, its analysis also points out that if Trump is elected, the promotion effect on the entire encryption industry may be stronger. Trump favors less regulation and more business-friendly policies, which will give crypto companies more room to grow. VanEck emphasized that Trump’s business-friendly policies may have a broader supporting effect on the entire crypto market.

However, in contrast, VanEck believes that Harris' election may cause the encryption industry to face greater regulatory pressure, especially from members of the Democratic Party such as Elizabeth Warren who have a negative attitude towards cryptocurrency. But even so, Harris's policies may promote Bitcoin to become a currency reserve tool adopted by more countries and institutions.

The market’s different expectations for the outcome of the election are also reflected in the fluctuations in Bitcoin prices. According to Bernstein’s prediction, if Trump wins the election, the price of Bitcoin could surge to between $80,000 and $90,000 by the end of the year. On the other hand, if Harris is elected, Bitcoin could fall, testing support at $30,000 to $40,000.

Can Bitcoin continue to develop in the new political environment?

Regardless of who ultimately becomes the next U.S. president, VanEck stressed that the global trend of rising fiscal deficits and national debt will continue, which will further weaken the purchasing power of the dollar. In this general economic environment, Bitcoin, with its anti-inflation and non-sovereign nature, will continue to attract more investors, especially institutional investors seeking to store value and hedge.

Overall, VanEck analysts believe that the long-term adoption of Bitcoin will not only depend on the direction of U.S. policy, but will also be affected by the global economy and geopolitics. As more countries and institutions enter the Bitcoin market, whether Trump or Harris is elected, Bitcoin is likely to continue to grow in the coming years.

Further reading
The two parties are fighting each other in the US election! But this data shows: No matter who is elected, Bitcoin will be the winner
No matter who wins! Standard Chartered: Trump and Harris will let Bitcoin rise to "this point" respectively

[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.