The upcoming US presidential election is looming with a number of possible ramifications for different sectors as the Democrats look to topple Donald Trump and his Republican party. Within the cryptocurrency space, there are also rather large ramifications as each candidate has a different approach to the broad space.
Bloomberg has contested that the election of a new president, in Joe Biden, would be a victory for Bitcoin in general, but less so for a space like DeFi. They have also added that Trump’s policies towards crypto, despite his infamous tweet against the cryptocurrency, have mostly been hands-off.
The latest Bloomberg crypto newsletter contends that the election of Joe Biden as president of the United States would bring greater mainstream adoption of Bitcoin (BTC), including a potential exchange-traded fund approval.
More to consider
Bitcoin and the general cryptocurrency space is forcing its way into consideration by regulators, as well as high level governmental departments, and with an election on the horizon, the next four years will clearly see who ever wins have to contend with the space more, and in their own way.
“A potential Joe Biden presidency should shine favor on further appreciation in the price of Bitcoin, in our view. New leadership may change the hands-off policy of the Trump administration — to the detriment of the broader crypto market — and nudge the firstborn benchmark toward the mainstream, improving chances for an ETF,” explains Bloomberg.
However, there is also the other side where the author states that the same forces would hamper DeFi’s growth. Both conclusions are based on the assumption that a “Democratic sweep” would potentially enable greater regulatory clarity for the crypto space.
The DeFi space has exploded this year in a completely unregulated environment. It is no coincidence that the perpetrators behind the KuCoin hack have been laundering their illicit proceeds through the biggest decentralized exchange, Uniswap.
Bitcoin always rising
In the grand scheme of things, the election in the US will have an impact on the crypto space, but it is not likely to hamper the growth or expansion too much.
“Bitcoin’s price will keep going up no matter who’s elected president, but at a moderating pace,” added the note. “Seemingly unstoppable trends in U.S. debt-to-GDP, quantitative easing (QE) and the increasing Bitcoin hash rate indicate a crypto price more likely to keep advancing during the next presidential administration, in our view. About half the 1,400% gain since the 2016 vote would get the Bitcoin price toward $80,000 in 2024.”