Harris win unlikely to rock Bitcoin price, but crypto fears persist, say observers

2024-11-01 13:46:45 Primitive Reading

From cointelegraph by Daniel Ramirez-escudero

The 2024 United States presidential election is set to have an unprecedented effect on the cryptocurrency industry.

While many investors worry that a victory for Vice President Kamala Harris would dampen the market, some believe that her administration would bring a positive change for the industry.

With Harris’ link to current President Joe Biden’s administration — which is often viewed as anti-crypto — analysts at private wealth management firm Bernstein forecast that a Harris victory could drive Bitcoin’s BTC$69,478 price down significantly by year-end.

However, pseudonymous crypto trader Crypto Rand believes that a Harris win won’t bring an end to the bull market.

The trader told Cointelegraph that Bitcoin BTC$69,478 and altcoin markets are due for a bull run in Q4 2024 and Q1 2025, regardless of who ends up in the White House.

“If Harris gets elected, there will be a bump on the road, but the trend will continue,” he predicted. He foresees a temporary 5% to 10% dip in BTC’s price, viewing it as a short-term disruption rather than a trend reversal.

Youwei Yang, chief economist at Bit Mining, believes crypto investors should focus on monetary liquidity in the global economy.

“The more easing monetary policy becomes, the more likely ‘hot money’ will flow into risk assets like cryptocurrencies,” Yang told Cointelegraph. He believes that a Harris election win could enhance this liquidity.

Correlation between Bitcoin price and global liquidity. Source: Lyn Alden

Yang argued that if the Federal Reserve “adopts a more accommodating stance under a Harris administration, it could offset the regulatory challenges and support crypto prices, leading to only minor differences in the end result.”

Yang forecasts BTC at $120,000 under a Harris administration, while saying it could reach slightly higher under a renewed President Donald Trump, with a prediction of $135,000.

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