Summary:
Bitcoin rises 3% to $70,053.56 amid election anticipation
Analysts see Trump as more favorable for crypto than Harris
Bernstein analyst predicts $200,000 price target for Bitcoin by 2025
ETFs attract over $23 billion in inflows this year
Bipartisan support for crypto regulations could shape future market
Bitcoin and Market Overview
Cryptocurrencies experienced a slight increase on Tuesday as investors eagerly awaited the results of the U.S. presidential election.
Bitcoin rose 3% to $70,053.56, just 5% off its all-time high, following a boost from rising stocks. Last week, Bitcoin was close to hitting its previous peak again. Meanwhile, Ether climbed 2% to $2,473.40, and Solana’s token surged by over 5%. Notably, memecoins like Dogecoin and Shiba Inu saw impressive gains of 12% and 8%, respectively.
Election Day Dynamics
On election day, the battle between Vice President Kamala Harris and former President Donald Trump is viewed as a pivotal moment for the crypto industry. Many analysts suggest that a win for Harris could pose risks for crypto, while Trump is seen as more favorable, having positioned himself as a pro-crypto candidate.
Despite the outcome, Bernstein analyst Gautam Chhugani believes Bitcoin will persist and thrive, citing ongoing U.S. fiscal indiscipline and demand for hard assets like gold and Bitcoin as key drivers. Chhugani predicts a $200,000 price target for Bitcoin by 2025, with potential fluctuations depending on election results. He anticipates a short-term rally to $90,000 if Trump wins, but a drop to $50,000 if Harris prevails.
Broader Market Implications
Chhugani also notes the success of Bitcoin ETFs, which have attracted over $23 billion in inflows this year. A supportive SEC could open up opportunities for all cryptocurrencies beyond just Bitcoin. The key to a thriving crypto market lies in bipartisan support for crypto regulations, which could be influenced by the election outcome.
While Trump is expected to push for a crypto-friendly SEC, Harris has pledged to defend crypto asset ownership, although the community is seeking more specific policies from her camp.
The sentiment is shifting as some analysts believe that a Harris presidency may not be as damaging to crypto as previously thought, despite fears stemming from the current administration's regulatory stance under Gary Gensler and vocal opposition from figures like Sen. Elizabeth Warren.
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