Bitcoin prices recently reached a three-month high near $70,000, driven by a surge of inflows into exchange-traded funds (ETFs) for the world’s largest digital asset. The price boost has also been supported by optimism over potential softer regulations for cryptocurrencies after the US Presidential Elections 2024.
US spot-Bitcoin ETFs attracted nearly $2.4 billion in net inflows in the six days leading up to October 18, according to Bloomberg data, partly fueled by expectations that US crypto regulations may become more favorable after the November 5 election. ETF demand helped push Bitcoin prices to a record high of $73,798 in March.
US Presidential Election have long influenced financial markets, and the cryptocurrency market is no exception. As candidates outline their regulatory policies, crypto prices tend to react based on investor sentiment regarding future leadership.
Republican candidate Donald Trump is openly supportive of cryptocurrencies, with Bitcoin often being referred to as a “Trump trade” due to his pro-crypto stance. In contrast, his Democratic opponent, Vice President Kamala Harris, has promised to establish a clear regulatory framework for the cryptocurrency market.
This marks a shift from the stricter approach taken under the Biden administration, which has implemented tighter regulations on the sector. The differing views of the candidates make the future of cryptocurrency regulation a key issue in the upcoming US presidential elections.
Here’s what to expect for Bitcoin prices after US Elections 2024.
Bitcoin’s Future Post-US Elections 2024
Edul Patel, CEO of Mudrex, noted that Trump’s proposal to make Bitcoin a strategic reserve and position the US as a global crypto hub has sparked significant market enthusiasm, driving up Bitcoin prices.
“Kamala Harris has also announced plans to bring out friendly crypto regulation. It is interesting to see how the coming weeks would turn out to be. But, it is evident that both the parties are going to bring some good news to the market in the US and the world. This is also going to help our countries follow the suit,” said Patel.
Vikram Subburaj, CEO, Giottus Crypto Platform believes a win by pro-crypto candidate Donald Trump, who has expressed a more hands-off approach to regulation, could be perceived as reducing regulatory risks.
“Conversely, a victory by Kamala Harris could bring a more structured regulatory environment. While this might introduce additional oversight, it could also provide much-needed clarity and thereby stabilize Bitcoin’s price over the longer term,” Subburaj said.
Bitcoin Price Outlook
The cryptocurrency market has experienced strong growth in 2024, with major developments happening in the sector.
“Especially, the approval of the US Spot Bitcoin ETFs have added a lot of legitimacy to the sector. With this institutions have been entering the market smoothly. Plus, the US elections are also adding to the momentum. Bitcoin has already reached an ATH this year and is gearing for another one. If it continues to stay on track, reaching $100,000 is not too far,” Patel said.
Historically, October has been a strong month for Bitcoin, with average price increases of 21% over the past decade. Subburaj expects Bitcoin could approach its all-time high near $73,000 before the US elections 2024.
He remains optimistic about further price movements, adding, “There will, hopefully, be price discoveries after that,” indicating the potential for more volatility and upward momentum in the post-election period.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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