The 2024 U.S. Presidential elections have seen Bitcoin and cryptocurrency gimmicks as a means to garner voter base as Bitcoin and crypto both pose a greater concern amongst citizens. A recent research study has found that Donald Trump’s win could push Bitcoin to $80,000 or more.
If Trump wins, does Bitcoin and Crypto win too? : US Elections Trends
Bitcoin’s price is dynamic and not exclusive, its driving factors do cover political decisions, regulations, and public opinion, apart from of course, other geo-political economic factors. Globally, the regulatory environment is heterogeneous—ranging from strict bans to the U.S. recognizing Bitcoin in investment products like ETFs, El Salvador even adopting it as legal tender, Russia touting itself as a Bitcoin mining leader and so on. Despite Bitcoin’s original motive of ‘decentralization’ and economic freedom from governmental influence, legal recognition has proven essential for its mainstream acceptance.
When it comes to Bitcoin and its recent trends in the US, political candidates are increasingly vying for the crypto community’s support. According to a recent research paper, “The distributional consequences of Bitcoin”, authored by Ulrich Bindseil and Jürgen Schaaf, in the U.S., cryptocurrency companies have boosted political funding, contributing around $119 million to crypto-friendly Political Action Committees (PACs). While crypto ads tend to focus on endorsing favorable candidates rather than crypto itself, the sector’s backing largely supports the Republican Party. Former President Donald Trump, now running for re-election, has expressed strong pro-crypto views, pledging to safeguard Bitcoin holders’ rights and amass a “national Bitcoin stockpile.”
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Democrats are more cautious, with Vice President Kamala Harris’ campaign seeking a balanced regulation. The passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) in May 2024 shows increasing bipartisan interest, though Democrats remain focused on consumer protection and stability.
On the other hand, the once independent candidate Robert F. Kennedy Jr., who had formerly supported Bitcoin-friendly policies like making Bitcoin tax-free and transparent through blockchain, has also recently endorsed Trump. This shift aligns with the Republican agenda, which generally favors ‘fewer regulatory restrictions’ and has gone on record several times to criticize current crypto regulations and lawmakers including Gary Gensler, the Chair of US Securities and Exchange Commission (SEC) .
The crypto sector sees Trump as a promising candidate to promote a favorable crypto environment, predicting that a Trump win could push Bitcoin’s price up to $80,000 or higher, while a Harris victory might limit Bitcoin’s potential, with prices potentially falling to $30,000–$40,000. With voters in swing states increasingly interested in candidates’ crypto positions, the election’s outcome could significantly mold Bitcoin’s regulatory future in the U.S.
To conclude, even as the Democratic approach may try to hit a middle ground on crypto and Bitcoin, a Republican victory led by Trump could potentially lead to a more crypto-friendly regulatory environment.
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Also Read: Bloomberg Host Roasts SEC Chairman Gary Gensler: “Trump Would Fire You”
