With just four days to go until the US presidential election, crypto enthusiasts are hoping that a win for their favorite candidate will lead to a higher Bitcoin (BTC) price.
Who will be more favorable to Bitcoin?
From the perspective of crypto enthusiasts, the 2024 US presidential election is unlike any other as both candidates recognize the increasing importance of digital assets.
While a victory for Republican candidate Donald Trump is seen as beneficial for the crypto industry, Democratic candidate Kamala Harris has promised a new approach to digital assets. contrasting with the perceived hostility of the Biden administration.
Both candidates try to ‘crypto voting block‘ – a significant portion of voters are more likely to support a candidate with a pro-crypto stance.
Bitwise CIO Matt Hougan mentioned in a recent article interview with Yahoo! Finance that the most crucial outcome for BTC is simply that ‘the elections happen’.
Hougan emphasized that regardless of a Trump or Harris victory, the regulatory environment for crypto is steadily improving. He attributed the recent positive movement in digital asset prices to a more mature regulatory framework.
The Bitwise CIO said that while the crypto market favors a Trump win over a Harris win in the short term, Bitcoin “really doesn’t need Washington to succeed.”
The crypto manager added that regardless of election results, institutional investment in the digital asset space is increasing, evidenced by strong inflows into Bitcoin spot exchange-traded funds (ETF) in recent days.
When asked about the role of regulatory clarity in crypto, Hougan pointed out that it impacts altcoins more than BTC. He expects that there is a greater chance of an altcoin rally than a BTC rally if Trump wins. Hougan added:
Now is the best time to invest in Bitcoin from a risk-adjusted perspective. All of Bitcoin’s major existential risks have been washed away. We have an ETF, we have institutions. They come into space. The biggest catalyst is that step of institutional adoption.
The road to a new ATH will not be easy
Although BTC is trading very close to its all-time high (ATH) price of $73,737, it has not yet reached the March 2024 price level.
Increasing geopolitical tensions worldwide are adding to the volatility of an already volatile asset discourage the more risk-averse investors buy more BTC.
However, existing macroeconomic uncertainties are not stopping crypto analysts from sharing their ambitious price targets for the top cryptocurrency.
Analysts at trading firm Bernstein recently said predicted that $200,000 BTC by the end of 2025 could be a conservative target.
That said, the weekly charts show BTC trying to get past its ATH multiple times, but falling every time. At the time of writing, BTC is trading at $70,840, about 4% below its ATH.
Featured image from Unsplash.com, chart from TradingView.com