Kamala Harris or Donald Trump? Gary Gensler in or out? Bitcoin Headed to $80k or $40k: Key Presidential Influences Explained
As the 2024 US presidential election approaches, the crypto community is paying close attention to how the outcome will affect the market. Both Kamala Harris, the Democratic candidate and former President Donald Trump are expected to have an impact on Bitcoin and the broader cryptocurrency market, but in different ways.
The potential impact of Kamala Harris's presidency
Known for her no-holds-barred stance on cryptocurrency, Kamala Harris could pose challenges to the broader crypto market. Experts from VanEck, a leading digital asset research firm, suggest that the Harris administration may retain Gary Gensler as SEC chairman, which may lead to stricter regulatory policies for the crypto industry. Aligning with the financial policies of the Democratic Party, represented by figures such as Senator Elizabeth Warren, creates an obstacle to institutional adoption of digital assets.
While this tightening of regulation may slow the overall growth of cryptocurrencies, VanEyck believes that Bitcoin could benefit from such a situation. Increased fiscal spending and tighter regulations may push more investors to look at Bitcoin as a hedge against economic instability and inflation. In other words, a Harris presidency could indirectly boost Bitcoin's appeal as a safe-haven asset.
What Does Trump's Presidency Mean for Crypto?
On the other hand, a Trump presidency could support the entire cryptocurrency ecosystem. Trump has positioned himself as a pro-crypto president, advocating for regulatory and trade-friendly policies. Under his leadership, the crypto sector may face less regulatory oversight, providing a more conducive environment for growth and innovation.
VanEck analysts believe the Trump administration will be more favorable to the broader crypto market. Disruption can especially benefit crypto entrepreneurs and lead to market expansion.
The future of Bitcoin in both presidential terms
Although they have different views on how Harris or Trump can affect the crypto sector, most analysts agree on one thing: whoever wins, Bitcoin is ready to grow. Bernstein, a major investment research firm, has predicted that if Trump wins the election, Bitcoin will rise to $80,000 to $90,000. However, if Harris wins, the market could see Bitcoin price test the $30,000 to $40,000 range in the short term.
