The upcoming U.S. elections are primed to shape the crypto market landscape. Cryptocurrency users are preparing accordingly, with some market participants bracing themselves for what might be the catalyst for a bearish or bullish market rally.
The 2024 United States Presidential elections will commence on Tuesday, November 5th, 2024. Prominent cryptocurrency figures say the election results are expected to significantly impact the price value of digital currencies and crypto-based ventures.
The upcoming elections have already hit the DeFi industry, as Ethereum users anticipate potential volatility in the coming weeks. Earlier this week, Ethereum (ETH) suffered mild losses as prices dropped by 4% within 24 hours.
According to Nick Foster, the founder of the DeFi options platform Derive, the price decline directly correlates with investors’ bearish outlook as the elections approach.
Speaking to FXStreet, Foster is quoted saying,
“The upcoming US election could have a significant impact on ETH, particularly because of its ties to the DeFi ecosystem, which may face regulatory scrutiny depending on the election results.”
A favorable DeFi and overall crypto-friendly policy could strengthen the Ethereum blockchain in the long run. However, unfriendly crypto regulations will pose a great risk to investors as DeFi remains a great driver of adoption for Ethereum.
How pro-crypto are U.S. Presidential Candidates?
So far, Presidential Candidate Kamala Harris has yet to make an official statement on the cryptocurrency industry. As such, market players are uncertain about her stance. Conversely, rival candidate Donald Trump has backpedaled on his anti-crypto sentiments.
Trump first criticized cryptocurrencies in 2019, citing rising concerns over the assets’ use in illegal online activities. He has since taken a more positive approach to crypto this year. Trump has remarked that he would like to see the U.S. become the planet’s crypto capital and Bitcoin the world’s superpower.
The presidential candidate is also accepting campaign donations for cryptocurrencies and NFTs. Similarly, Trump’s vice presidential running mate, Senator J.D. Vance, has always expressed pro-crypto views.
According to Charles Hoskinson, the co-founder of Cardano, the cryptocurrency community seems to be biased toward former President Donald Trump.
“Between [Vice President Kamala] Harris and Trump, Trump is certainly the favorite from a cryptocurrency perspective. But the reality is, regardless of if the U.S. is pro-crypto or not, the world is moving on.” Hoskinson told CNBC.
