The U.S. presidential election is just around the corner. Under this scenario, it is expected that the reaction to the crypto-currency and Bitcoin will be very strong.
This November 3 is the date of the presidential elections in the United States. Donald Trump, the current president and the Republican Party candidate, is facing Joe Biden, the Democratic Party candidate, mainly known for being Barack Obama’s vice president from 2008 to 2016. The voters in the United States will decide whether Donald Trump stays in the White House for four more years or not. What does a possible re-election of Donald Trump mean for the economy, and what does it mean for the crypto coins and Bitcoin?
Although crypto currencies were created to separate themselves from the financial system, Bitcoin and the rest of the digital assets do not move outside the economic system of the dominant countries. In the sphere of cryptomonies and blockchain, it is difficult to get rid of politicians and vice versa.
The economic events are not only affecting traditional economies and all eyes are on the US presidential elections in 2020. But despite the immense benefits of blockchain and digital currencies, not everyone is prepared to make use of them or believe in their potential.
The decentralized nature of crypto and blockchain has always been a hard pill to swallow for most governments, and the United States is no exception.
Donald Trump crypt coins and Bitcoin What to expect?
The 45th President of the United States is well aware of Bitcoin and doesn’t like it. In July 2019, Trump unleashed a scathing attack on the leading crypto currency in a tweet that came days after the launch of Facebook’s Libra crypto currency project. He stated categorically that he was not a Bitcoin fanatic, that crypto currencies are not money and that their value is very volatile.
The Trump administration has failed to create a clear regulatory framework on digital coins and blockchain. However, in March, the Office of the Comptroller of the Currency announced the appointment of Bitcoin’s Brian Brooks as its chief operating officer. The appointment was seen as an endorsement of blockchain technology by the Trump administration.
However, the former US vice president and the only Democrat competing for a presidential post after Bernie Sanders retired is presumed to be a Bitcoin supporter. In one article, Joe Biden was portrayed as „the Bitcoin candidate“.
While he has not gone public to support cryptosystems, Biden is a strong supporter of technology and innovation. In 2011, he commented on the internet and called it a neutral source: „The internet itself is not inherently a force for democracy or oppression, for war or peace. Like any public square or any trading platform, the internet is neutral.
In addition, the Political Action Committee, which was campaigning for Biden’s presidential candidacy, began accepting donations from Bitcoin in 2016. According to the CAP director at the time, the move was in line with Biden’s „support for technology and innovation throughout his career“.
But how do the two candidates influence cryptomoney and Bitcoin?
Kryptomone macro-analyst Alex Krüger fears that the election of Joe Biden could lead to higher taxes and more regulation. Both factors could increase pressure on the economy and the stock market.
In addition, Biden, together with the US Federal Reserve, could continue to pursue a flexible monetary policy and thus send the US dollar lower. This could benefit precious and base metals and Bitcoin in particular, which are valued against the dollar, Krüger said.
On the other hand, a re-election of Donald Trump could mean a different, although more optimistic, scenario. According to Kruger, a Trump victory „would require some adjustments, but would lead to an even stronger bullfight. Everybody wins“. A senior executive at Credit Suisse shares Krüger’s opinion.
According to Suresh Tantia, the stock market could experience a 5% decline after the elections. He also stressed that the Fed’s fiscal policy has not had any noticeable effect, either on the stock market or on the dollar. The continued downward trend of the dollar and the stagnation of the stock market could boost sentiment around Bitcoin and gold in the long term.
The future of the crypt coins in your hands
However, as Krüger also pointed out, a new economic stimulus package could have an even greater impact on the price of Bitcoin. According to the expert, it is rather unlikely that another package will be approved before the elections. Instead, he expects it to be approved in the first half of 2021.
According to Krüger, this could have an even greater macroeconomic impact on Bitcoin and gold. A second stimulus package would relieve the considerable pressure on all asset classes and have a positive impact on Bitcoin.
As the crypt coin market continues its highs, the Bitcoin world is looking very closely at what will happen next November. Without intending to, Trump and Biden have the future of the assets in their hands.