Bitcoin has been off to a great start in 2024, with the asset breaching the $50,000 ceiling earlier this month, a feat which hasn’t happened since 2021. Yet in an election cycle that is making some investors nervous, and amid an uncertain economic landscape, Bitcoin’s trajectory is also unclear.
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The asset — up 111% in the past year and 25% in the past month, per CoinGecko — matters to a lot of Americans. As noted in a recent Grayscale survey, approximately half of young voters who own crypto at higher rates than equities are considering 2024 election candidate’s positions on crypto before casting their votes.
Against that background, how could the election cycle further boost Bitcoin’s price?
1. More Crypto-Friendly Regulations
“Predicting Bitcoin’s reaction to the U.S. presidential election is complex, and the outcome could influence Bitcoin, especially if the new administration is not crypto-friendly,” said Anthony Georgiades, general partner at Innovating Capital.
Georgiades noted, however, that Bitcoin’s global reach means its market is less susceptible to U.S. policy shifts and that its use as a hedge against economic instability — particularly in regions with weak banking systems and inflationary fiat currencies — underscores its resilience.
2. Depends on Who Wins
Yet, for some experts, it all boils down to the candidates and their stance on crypto as a whole.
President Joe Biden’s administration signed an executive order to address the risks and harness the potential benefits of digital assets and their underlying technology. Additionalyl, a recent Grayscale report noted Biden is favorable toward exploring a central bank digital currency (CBDC) and has proposed a 30% tax on the cost of electricity to mine Bitcoin.
As for Donald Trump, he deemed Bitcoin and crypto a “scam” as president in 2019, but has since released a set of digital collectibles on the Bitcoin blockchain, Grayscale noted. Fellow candidate Nikki Haley has not publicly shared her opinion on crypto.
For Thomas L. Hogan, Ph.D., Senior Fellow at the American Institute for Economic Research, a change in leadership would be bullish for Bitcoin.
“The Biden…
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