The US election has a significant impact on markets around the world, including foreign exchanges and even stock markets. And, this year’s election pitted two highly opposed figures against one another. But, while the outcome of the election is important, many within the cryptocurrency market do not expect the results to have much bearing on the eventual price of Bitcoin and other cryptocurrencies.
Both hopefuls are seen as having a more positive opinion towards Bitcoin and its ilk, which means that while the eventual winner might determine how quickly BTC prices get there, most analysts expect prices to reach $100,000 by the end of 2025.
Cryptocurrency’s Prominence
Cryptocurrency continues to play a disruptive role within the financial industry, as it gains popularity and sees increasingly widespread use. It is a popular investment tool and is now accepted by thousands of businesses around the world.
It is popular with e-commerce stores, as numerous large players and smaller e-stores have started accepting such payments in the last few years. Gaming platforms and iGaming hubs are also adopting crypto payments very quickly. For instance, Bitcoin casino websites have emerged as major contenders in the iGaming industry. Crypto’s increased popularity at casinos and other businesses comes thanks to its faster, lower-cost transactions, as well as its privacy and anonymity. Since this technology is not country-limited, iGaming websites have attracted p(l)ayers on a global scale, facilitating the ease of use and the speed of withdrawal.
The Election Effect
From a technical standpoint, Bitcoin is considered undervalued against its cycle low and April’s halving event. As such and considering Bitcoin’s performance after the last three US elections, many analysts are expecting reasonable growth from the world’s largest cryptocurrency in the months immediately following the election.
Prices are not expected to rise as much as they have after previous elections.
In 2012, Bitcoin’s price was barely more than $10 – a 12,000% surge saw that rise to $1,100 during its next cycle, taking almost exactly a year to reach this point.
In 2016, prices had dropped and BTC was trading at $700 when the election started. Again, its positive cycle lasted around a year, but this time, prices rose 3,600%: still an impressive jump that took the price to $18,000, but percentage-wise, that was a lot lower than in 2012.
2020 saw Bitcoin prices rise from $13,500 to $69,000 a year later – an increase of more than 400%.
Bitcoin Price Predictions
In light of previous post-election cycles, some are pointing to a $100,000 price. But BTC will hit considerable resistance at that point with $100,000 representing a psychological level where a lot of traders have automatic sales established. When BTC hits $100,000 it will likely suffer some correction, potentially followed by a period of accumulation, if it is to go higher.
The Coming Months
Who wins the election and is installed in The White House is unlikely to have too much effect on prices, at least according to a lot of analysts. Both Harris and Trump are considered more agreeable to cryptocurrency than their predecessor, Joe Biden.
Both have gained considerable endorsements and donations from within the crypto industry, and both recognize that cryptocurrency’s influence and appeal aren’t going anywhere.
On the face of it, Trump is more pro-crypto than Harris. He has promised to make the US the crypto capital of the world and his family has even established its own crypto project, while the former President is said to hold around $3 million in different coins and tokens.
In contrast, Harris has remained relatively tight-lipped on her cryptocurrency plans, other than to say that a Harris-led government would concentrate on consumer protections.
The Rest of The Crypto Industry
However, while many analysts have come around to the idea of BTC increases regardless of who wins, others do not believe the same is true for other coins. Ripple is already heavily entrenched in banks and financial institutions: its network is being used to facilitate faster, less expensive transfers than are offered by existing payment systems.
However, the likes of Solana may need a Trump victory to see significant gains. Several fund companies have filed applications for Solana ETFs. Harris is likely to take a more considered approach, which means any agreement could take two years or more. Trump, who is known for a more gung-ho approach, may be more inclined to encourage new ETFs and other crypto-related products.
Bitcoin’s 2024 Performance
Bitcoin has enjoyed a strong 2024. It opened the year at $44,200 before posting big gains in March, marking a new all-time high of just over $73,000 by the end of the month. Following some correction, BTC has attempted to retake the $70,000 mark several times since but has failed to make it stick, dropping back to a current price of around $68,000. Even at its current price, though, BTC has posted gains of more than 50% since the turn of the year.
It seems unlikely that election results have yet to be priced into the coin’s value, which means we can expect to see some significant movement, one way or the other, after the election is called or when the market has a better idea of which way the contest will go.
The Crypto Market As A Whole
Other coins have also performed reasonably well this year. Ether opened just under $2,400 before hitting a high of $4,000 in March. However, its correction has been more marked than that of Bitcoin and it is currently trading at $2,450, representing just a 2% increase for the year.
Solana opened at $100, saw a high of $200, and is currently trading up 64% for the year at $165. One of the best-performing major altcoins has been Pepe. The meme coin has posted gains of more than 500% for the year.
Conclusion
Although cryptocurrency is still young compared to traditional financial markets and other currencies, it is gaining in popularity and the crypto market is maturing as a result. BTC prices are still influenced by factors like elections, with analysts predicting increases for the world’s biggest cryptocurrency in the 12 months following the election.
Investors can also expect the launch of new crypto ETFs, likely starting with Solana, although the timing of these launches will depend on which Presidential hopeful is in power in the coming months.
