Recently, cryptocurrencies have received increasing attention around the world, especially in the US political arena, where Vice President Harris and former President Trump have expressed varying degrees of "support" for cryptocurrencies. With the US national debt reaching $35 trillion, cryptocurrencies, especially Bitcoin, seem to be seen as a possible solution.
U.S. Vice President Harris said in a speech to the Economic Club of Pittsburgh on Wednesday that under her leadership, the United States will "recommit" to maintaining global leadership in areas that will define the next century, "maintaining dominance in artificial intelligence and quantum computing, blockchain and other emerging technologies."
Harris, who had been silent on cryptocurrency on the campaign trail until last weekend, said at a recent Wall Street fundraiser in Manhattan that artificial intelligence and cryptocurrency are part of her vision for an “opportunity economy.”
Although a number of crypto KOLs have expressed the positive effects of Harris's move, it is too early to conclude that Bitcoin and crypto assets will have a smooth road ahead. So how does the current mainstream society view Bitcoin and other crypto assets?
01 What does the next US president think?
The "finals" of the US presidential election are imminent. If nothing unexpected happens, one of Trump and Harris will become the next US president in a few months. Before Harris once remained silent on crypto assets, Trump made no secret of his support for crypto assets.
Trump and Harris represent the very different political views of the Republican Party and the Democratic Party respectively. The Republican Party tends to support and participate in technological innovation and market freedom, while the Democratic Party's propositions, including environmental impact and sustainability, financial inequality and social justice, and stronger supervision, reflect its values of weakening individual freedom and power and emphasizing public and collective interests. The environmental impact of Bitcoin mining in the past and the seemingly unequal wealth acquisition of a large number of individuals have made the Democratic Party full of prejudice against crypto assets.
VanEck analysts said the outcome of the November election could be a mixed blessing for cryptocurrencies. “We believe that while both Harris and Trump are bullish on Bitcoin, both parties have more nuanced impacts on the broader digital asset market,” the analysts wrote earlier this week. “Both administrations are likely to maintain, if not accelerate, fiscal spending, which could lead to further quantitative easing — especially if anti-business policies intensify.” They noted that a Harris presidency could be more bullish for Bitcoin because it would “accelerate many of the structural issues driving Bitcoin adoption.”
At this point, Harris's promise and statement mean that whoever comes to power as the next US president will be more friendly than the current Biden administration (which is relatively less friendly), at least on the surface.
02 What do institutions think?
Institutional funds usually vote with their feet, and the inflow of funds into Bitcoin ETFs can show how institutions view it. Recently, Bloomberg analyst Eric Balchunas posted on the X platform that the capital flow of US Bitcoin ETFs has reached US$17.8 billion since the beginning of the year, setting a new high. The goal of owning 1 million Bitcoins has been achieved by 92%, and the holdings of Bitcoin ETFs are close to the holdings of Satoshi Nakamoto. Data shows that Satoshi Nakamoto holds 1.1 million BTC, and the holdings of Bitcoin ETFs exceed 916,000.
At present, most of the world's largest fund management companies have already started crypto asset businesses. The Bitcoin ETF launched by BlackRock has even exceeded the holdings of Grayscale Fund, becoming one of the institutions with the largest Bitcoin holdings.
Unlike the SEC, which believes that Bitcoin is a risky asset, institutions have gradually improved their understanding of crypto assets in recent years. In the eyes of institutions, crypto assets such as Bitcoin have gradually transitioned from pure risk assets to an alternative asset that plays a safe-haven role in special circumstances. They have special significance and role, and can hedge some fiscal, monetary and geopolitical risks that other assets in the investment portfolio may face.
03 Summary
Harris and Trump's "support" for cryptocurrencies reflects the gradual recognition of cryptocurrencies in American politics. However, the actual policy implementation still needs further observation. As a representative of cryptocurrencies, Bitcoin is gradually being seen as a possible means to deal with the huge debt of the United States, and its price may also rise sharply in the future under the influence of various factors.
As the market's attention to cryptocurrencies such as Bitcoin continues to increase, investors should carefully assess risks and rationally allocate assets. At the same time, changes in the regulatory environment will also have a profound impact on the future development of cryptocurrencies. In this rapidly changing era of digital currencies, whoever can seize opportunities will be able to occupy a favorable position in the future financial ecology.
