US election prediction: 3 things that could happen to crypto

With less than a month to go before the US elections, there is great debate about who will be the next President of the United States of America and what impact this will have on the crypto industry, particularly on the price of Bitcoin and other cryptocurrencies. There was a lot at stake in this election as many analysts believed that cryptocurrency voters could be the biggest catalyst this time.
While some analysts say that the election result will have no impact on the price of Bitcoin as it did not falter in the last election, other analysts say otherwise.

There have been many other predictions regarding the outcome of the US elections and its overall impact on the crypto industry in the US and worldwide. In this article, we will understand why crypto continues to take center stage in this election and what the top three analyst predictions are.

Bitcoin was introduced more than three election cycles ago, in 2009. However, this will be the first US presidential election in which Bitcoin (and cryptocurrencies more broadly) will be seen as a major political factor. With Bitcoin prices stable and organizations like BlackRock claiming Bitcoin is this generation’s “store of value,” the economic tide has suddenly turned in favor of the industry and those who have supported it, despite years of bear market troubles.

The Federal Reserve estimates that the dollar will have only 3% of its original purchasing power by 2024, forcing many developing countries to consider other currencies for trade. In addition, there are concerns that current monetary policy decisions aimed at preventing a recession could potentially lead to hyperinflation of the dollar and an economic downturn.

The economy has fluctuated in recent years, with periods of rapid growth due to weak monetary regulations and moments of near economic collapse compounded by the looming debt crisis. This volatility has increased in recent years due to escalating global tensions and conflicts.

Therefore, since its inception, many investors, individuals and countries have turned to Bitcoin as a means to combat economic instability.

Today, America is therefore facing an unprecedented situation in which it must find a balance between an asset that can alleviate many financial problems. The world’s leading economy in 25 years will depend primarily on how the election on November 5th turns out and how Bitcoin is handled.

3 things that would probably happen after the election

Kamala Harris’ victory could benefit Bitcoin – and Trump could benefit Ethereum

When US interest rates are low and it is easy to raise funds, Bitcoin typically increases in value. A Harris presidency would most likely continue the already existing policies of monetary expansion and active government spending, which should either limit or boost the crypto market.

However, on the other hand, a Trump presidency could promote a positive attitude towards crypto companies in the US, which in turn could translate into positive regulation and growth of DeFi. Such a scenario would be particularly beneficial for Ethereum and other Layer 1 projects that are the building blocks of so many DeFi platforms. In summary, both scenarios could have a positive impact on different segments of the crypto space, but in different ways.

Trump will release a formal plan for Bitcoin and other assets before the election

Harris has been relatively quiet on digital assets, only referring to them in passing in the context of other emerging technologies. This apparent indifference suggests that their government has no plans to discuss crypto policy in detail.

Conversely, Trump has worked hard to win the “crypto vote.” He became the first sitting president in history to appear at the Bitcoin Conference in Nashville in 2024, where he strongly supported the future of Bitcoin in the country and promised to protect it from strict regulations, particularly from Senator Elizabeth Warren. More than any other figure, Trump has founded an autonomous finance (DeFi) company – World Liberty Financial, which goes a step further and seeks active participation in the space.

Due to these circumstances, it is very likely that we will see formal drafts of the Trump campaign’s policies regarding cryptocurrencies and other digital assets before the election. These could shape the future framework of crypto regulation in the United States.

Gary Gensler will 100% be eliminated regardless of the election outcome

SEC Chairman Gary Gensler has proven to be a controversial topic within the crypto industry since he assumed the position. His approach of treating regulation like enforcement has worked to some extent, but it has also sparked backlash in the courts. This has further soured the already strained relationship between the SEC and the industry, leading to fears about restoring some flexibility.

Former United States President Donald Trump has promised to “fire” Gary Gensler if he wins the election. In the history of SEC chairs, they tend to resign or be appointed elsewhere when new administrations come in. This highlights the increasing political influence that politicians are gaining when it comes to cryptocurrencies.

And even if incumbent Vice President Harris wins the election, her administration would most likely adopt the same approach to win over the cryptocurrency market. This suggests that regardless of the outcome of the election, there will most likely be a change in the regulatory objective regarding the use of cryptocurrencies.

Diploma

With tech mogul Elon Musk recently claiming at a Donald Trump rally in Pennsylvania that this is the most important election in US history, the entire crypto industry and millions of crypto lovers in the US and everywhere are also watching this election campaign closely. Regardless of who wins on November 4th, we can safely say that the coming days will be turbulent for the crypto industry.