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This Election Outcome Could Boost Bitcoin
Bitcoin has been on a torrid pace of late, bringing exchange traded funds such as the VanEck Bitcoin ETF Trust HODL along for the ride. It’s the largest cryptocurrency and asset and has a market capitalization of $1.39 trillion (as of late Thursday). So it’s big enough that the results of the Nov. 5 presidential election could impact it.The outcome of that contest remains undetermined. And the same is obviously true of its potential impact on bitcoin and ETFs such as HODL. However, that’s not stopping some experts from speculating as to which candidate could be more beneficial to the digital currency.
deVere Group CEO Nigel Green believes the cryptocurrency could ascend to new highs should Trump win,. But Green’s commentary was focused on bitcoin; it was not an outright endorsement of either candidate. In a recent report, he noted that market participants’ speculation that Trump will win a second term could be one of the catalysts behind bitcoin’s recent surge.Bitcoin in Election SpotlightHODL, which holds actual bitcoin, jumped 16.22% in October. That reflects renewed bitcoin bullishness. It also reflects potential cryptomarket participants’ comfort with the idea of a second Trump term. Green noted that Trump’s pro-business policies and plans to reduce taxes could be among the factors bitcoin bulls are pricing in before the election.
“Should he return to office, Trump’s focus on deregulation might extend to cryptocurrency markets, providing a friendlier environment for digital assets like Bitcoin,” observed the deVere CEO. “Similar fiscal policies could be reintroduced, creating an environment ripe for Bitcoin’s price appreciation. This potential policy outlook adds a sense of urgency for investors to secure their positions in the leading crypto.”
Additionally, Trump’s plans for deregulation could benefit the digital currency. That’s assuming he wins and that those plans materialize. Green said it’s possible a more relaxed regulatory environment could bring more professional investors into the cryptocurrency. That could potentially benefit ETFs such as HODL along the way.
“Such a scenario would bring even more institutional money into Bitcoin, driving its price higher. If Trump advocates for more crypto-friendly policies, it would reinforce the digital asset’s standing in mainstream finance,” added Green. “A Trump victory, we believe, could spark a substantial rally for Bitcoin as investors look to capitalize on potential policy shifts and a pro-business outlook.”For more news, information, and analysis, visit the Crypto Channel.
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