TL;DR
- The presidential elections in the United States could severely affect the cryptocurrency market. Trump’s possible victory might boost BTC due to his pro-crypto stance, while his potential loss could have the opposite effect.
- Biden’s withdrawal has Trump and Harris tied at 44% support each, while Robert Kennedy trails behind.
Bitcoin’s Possible Reaction
The US presidential elections, scheduled for November this year, have been a highly intriguing topic recently due to Joe Biden’s withdrawal from the race.
The current political leader of the States claimed his decision was “in the best interest” of the country, backing Vice President Kamala Harris as the Democratic nominee. Shortly after, she received support from the majority of the party delegates, meaning she has the best chance to oppose the Republican candidate, Donald Trump.
The voting result may trigger enhanced volatility in the cryptocurrency market, particularly bitcoin’s (BTC) price. Over the past several months, Trump has presented himself as a pro-crypto candidate, promising to let the industry thrive. He also claimed America should increase its BTC mining efforts and opposed the idea of launching a central bank digital currency (CBDC).
This has caused some industry participants to envision a crypto rally in the event of his potential election as the 47th President of the USA.
But what would happen to the market if his opponent wins? We referred to ChatGPT with that specific question. The AI-powered chatbot estimated that BTC’s valuation might be negatively impacted in the short term by such a development, assuming that Harris’ administration follows the steps of the current presidency.
Biden’s cabinet has previously addressed the risks related to the cryptocurrency industry, emphasizing the need to implement strict and comprehensive rules in the space. It also explored the idea of launching a CBDC.
On the other hand, ChatGPT claimed that Harris’ potential election could benefit BTC investors if her administration enforces “a balanced regulatory framework that promotes innovation while ensuring security.”
“Ultimately, the specific policies and regulatory measures implemented by her administration will play a crucial role in shaping Bitcoin’s market response. Market sentiment, global economic conditions, and other external factors will also significantly influence Bitcoin’s price,” the chatbot concluded.
Who Has the Upper Hand?
Recent polls show that Trump collects 43.5% support versus 40.2% for Biden. His lead started increasing at the end of June when the two opponents met for public debate. The gap became even wider following the unsuccessful assassination attempt on Trump on July 13. Back then, a 20-year-old gunman shot at him, but the bullet only scraped his ear.
Biden’s withdrawal, though, has seemingly changed the distribution of the votes. According to Ipsos, Trump and Harris have equal chances (44% of the total support each) to emerge victorious in less than four months.
Robert Kennedy – the independent candidate – is trailing behind in the third spot. Interestingly, he has also publicly expressed strong support for BTC and voiced opposition to creating a digital dollar. Last year, he pledged to strengthen America’s official currency by backing it with certain precious metals and Bitcoin.