How the Upcoming Election Could Shape the Future of Bitcoin and Cryptocurrency in America
The US presidential elections are just two weeks away. Both the candidates, Donald Trump and Kamala Harris, are trying to flatter the undecided voter base to win the elections. The former President Donald Trump is reaching for Latino voters, while Kamala Harris is relying on media interviews at the national level. Their different approaches to various issues in the economy and technology will probably influence the outcome of the elections.
Perhaps one area where the result of this election will have the largest impact is the cryptocurrency market, led by Bitcoin. Since the candidates presented sharply contrasting views on crypto regulation and taxation, it has weighed heavily on the prices of Bitcoin and the overall digital currency environment.
The Political Landscape and Bitcoin
The 2024 US election landscape is increasingly being shaped by cryptocurrency. In fact, according to a 2024 Polygenius survey, more than 1 in 5 Gen-Zers said that they are more likely to own cryptocurrency than stocks (18%). Further still, 1 in 5 American adults under 42 now hold digital assets.
In October 2024, US, A national Bitcoin reserve, as proposed by Senator Cynthia Lummis, is also comparing it to the Louisiana Purchase, which is a bold move to ensure the prosperous financial future of America and assume a global leadership position in finance. These shifts in demographics could demand policies that make Bitcoin legit and properly integrated within the financial system.
Kamala Harris vs Donald Trump
It seems that Donald Trump slightly edges ahead of Kamala Harris in the US presidential election. A Wall Street Journal poll reveals that Trump is at 47% and Harris is at 45%. The margin of error is within 2.5%. Voters seem to like Trump’s policies but are not convinced of his qualities as a person. On the contrary, the popularity of Kamala Harris appears to be declining as only 42% of the voters are rating her performance as good.
The Reuters poll on the other hand says Harris leads Trump nationally at 46 percent to 43 percent, and over 25 million voters have cast their ballots already.
Kamala Harris is a reflection of the cautious approach the Biden administration has taken with regard to cryptocurrency regulation. The strict measure against crypto firms allegedly results from concern over fraud and consumer protection.
On the other hand, Trump has projected himself to be more pro-digital assets with wishes for the US to become “the crypto capital of the world” and even suggested a national Bitcoin reserve like a gold reserve.
For the future of cryptocurrency in the U.S., November 5 will probably be the most pivotal election day. Depending on the results, policies passed at this point will significantly shape the digital currencies’ position in both the US and globally.
Regulatory Implications
The US House, Senate, and Presidency elections are close in date, and this is an interesting phase for the cryptocurrency sector. It has now started to shift focus onto regulation and political implications. Conferences such as Permissionless III in Salt Lake City and Ripple Swell in Miami featured discussions on how the race between Kamala Harris and Donald Trump may take shape for the crypto.
Experts discussed the level of centrality digital assets have begun to attain within US politics, particularly on regulatory matters. Lauren Belive from Ripple said that policymakers are growingly concerned about cryptocurrency’s intricacies.
The Role of Political Contributions
Politically, the cryptocurrency companies Ripple and Coinbase have also contributed big time in 2024, having spent more than $119 million to influence the voters according to a report from Public Citizen.
Almost half of the donations from all corporations go into the election and are given to nonpartisan super PACs in hopes of electing pro-crypto candidates. Leading these donations is Fairshake PAC, which received $114 million, followed by Coinbase’s $66 million, and Ripple at $45 million.
The infusion of funds has pushed crypto donations to rank second all-time, behind fossil fuel contributions. But there is also discord among the donors who are frustrated with the PAC’s strategy of supporting candidates or the lack thereof.
According to analysts, the future regulation of cryptocurrencies remains a contentious debate during elections. The results of this election will primarily define the future of cryptocurrencies in the US.
Impact of the US Elections on Bitcoin
Bitcoin is currently trading at around $67,062.54, with a slight increase of +0.09%. It has bounced back from a low of approximately $66,400, showing moderate trading activity. Support is strong around $66,800, while resistance is near $67,200, where the price has had difficulty breaking through. Overall, the market sentiment appears slightly bullish as the price consolidates.
The upcoming U.S. election could significantly impact cryptocurrency regulation. Uncertainty about policies is causing fluctuations in Bitcoin’s price. Investors are cautiously optimistic, especially with recent discussions on blockchain adoption. Economic factors, like inflation control, could make Bitcoin more appealing as a hedge against currency instability. As new regulations emerge after the election, the cryptocurrency market may experience increased activity and growth opportunities.
Conclusion
The US presidential election will play a crucial role in the future of cryptocurrency. Market dynamics will depend on how candidates approach crypto regulation. Young voters may choose candidates with pro-crypto policies. Their support could significantly influence digital currencies as both candidates engage with them.
The crypto industry is making large financial contributions to political campaigns. This shows its growing importance in shaping policy. No matter who wins the election, blockchain and decentralisation will be global trends. The US will need regulations that foster innovation while protecting consumers. This balance will shape how the country participates in the digital evolution.
