There is a longstanding debate among crypto people about what will happen to crypto if Trump wins. Also, what will happen if Kamala wins.
Before addressing each, let’s make a few things clear for crypto in this situation.
Macro Trends and Aid Could Spark a Crypto Bull Run
Macro conditions are extremely bullish. Also, US financial aid for COVID-19 triggered a massive bull rally in 2020. Chinese financial assistance will do the same in 2024-25.
Wars, complexities, diseases, and a ruptured economy pose challenges. However, regrettably, these unfortunate incidents affect the majority only, and the financial markets do not care about the majority. In other words, the rich will find ways to get richer, and the rich dictate the financial policies. People are likely to lose more jobs because of fears of recession, so we are only considering the crypto market. If you are interested in a macro report, do comment.
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Trump vs Kamala
For me, there are no favorites. However, both Kamala and Trump have been actively voicing their policy direction throughout the election phase. Simply:
Trump: I will fire Gary Gensler. Bitcoin is not bad for the US economy. Bitcoin is the future.
Kamala: More policies to regulate financial markets. Crypto is meh.
Bots and whales are waiting for the US election result to decide on the bullish aggressiveness. If Trump wins, they will be ultra-bullish, and if Kamala wins, they are likely to delay investing.
Impacts | Donald Trump win | Kamala Harris win |
---|---|---|
Market Bullishness | bullish more bullishness if he fires the SEC chair. |
Initial short-term bearishness |
Regulatory Environment | Ease regulations This will help alts dubbed as securities to pump high Narrative shift to privacy coins |
Focus on consumer protection and financial stability Recession is coming |
Investor Sentiment | Strong optimism Increase in trading volume Increase in volatility |
Hesitance among investors until clarity in regulations |
Potential Policy Changes | Proposals include creating a national Bitcoin reserve (Demand >> Supply) | Continuation of current policies |
General Performance of Stocks After US Election Result
Here is a chart comparing the performance of the stock market after the US election. Note that stocks did not perform well in September and October, which matches the historic results. So, we can assume that the stock market is likely to outperform other years in November and December.
If stocks perform well, crypto will outperform. So, we will be long-term bullish (6 months+) and short-term bearish (1 month) if Kamala wins. At the same time, we will be long-term bullish (3 months+) and short-term bullish if Trump wins
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post What Happens to Crypto if Kamala Harris Wins? appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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