Expectations for the cryptocurrency market this week regarding the US presidential elections revolve around volatility and regulatory uncertainty. The clash between candidates Trump and Kamala Harris has had a direct impact on the prices of crypto assets, especially Bitcoin, which has experienced a recent rise driven by speculation of a Trump victory and his promises to reduce regulations, which would benefit the sector. This phenomenon, known as the “Trump trade”, has attracted investment, especially in Bitcoin ETFs, as many investors expect him to ease the regulatory environment .
However, candidate Harris’ stance is different, with promises of clearer and more structured regulation. Although some investors fear that this could limit innovation, others see it as an opportunity to attract institutional investors in the long term, due to greater regulatory stability. This political uncertainty is also leading investors to seek safer assets, such as the dollar, which remains strong due to expectations that the Federal Reserve will gradually reduce interest rates. Such a scenario could put pressure on risk assets, including cryptocurrencies .
Given the close election and expected volatility, many investors are cautious. While optimism over a possible Trump victory and his pro-crypto policies will boost the market in the short term, any decision will be reassessed as the results come in and concrete policies begin to be implemented.
