Rising expectations surrounding Kamala Harris’ presidential campaign could be contributing to Bitcoin’s recent price decline, Bernstein analysts wrote in a report published on Monday.
Since President Joe Biden dropped out of the Democratic race in favor of his vice president, Harris’ odds of winning the election have soared in recent polls and cryptocurrency prediction market platform Polymarkets.
According to analysts at the investment firm, this is a sign of weakness and is due to the Democratic Party’s broader commitment to cryptocurrencies and Harris’ lack of clarity on digital asset regulation.
Polymarket is a popular betting platform where you can bet on everything from politics and sports to the next celebrity gaffe. Ethereum Scaling Network polygonand its popularity has skyrocketed amid this year’s U.S. election cycle as the cryptocurrency industry has become a hotter topic among politicians.
Republican presidential candidate Donald Trump come out Harris is known as a pro-cryptocurrency advocate, making her a leading candidate in some quarters, and a win for her in November could signal a worsening future for digital assets in the U.S., potentially causing crypto prices to fall, according to the report, written by Gautam Chugani, Mahika Sapra and Sanskar Chindaria.
“Our interpretation of current market sentiment is bullish for a Trump win and bearish for a Harris win (at least in terms of immediate market reaction),” Monday’s report said.
“The Trump campaign has been vocal on crypto policy, actively reaching out to crypto companies, bitcoin miners, and the broader community,” it added. “Trump’s Republican campaign has made strong appeals to crypto proponents, promising policies that are favorable to bitcoin and cryptocurrency innovation and hinting at the possibility of a national bitcoin reserve.”
Former President Trump has previously criticized cryptocurrencies, saying he was “not a fan” and calling Bitcoin a “scam.” But as the Republican presidential candidate this year, Trump has made his support for cryptocurrencies clear, even going so far as to say he wants all future Bitcoin to be mined within the United States.
Even Trump spoke At the Bitcoin 2024 conference in Nashville last month, he reiterated his claim that if he is re-elected, he would fire SEC Chairman Gary Gensler, a key figure in the cryptocurrency world.
While Harris has said little about the sector, billionaire serial entrepreneur Mark Cuban, a cryptocurrency advocate, said Decryption last month She said her advisers have asked “multiple questions” about the industry, suggesting she may be taking a friendlier stance toward cryptocurrencies than Joe Biden’s administration.
Editor: Andrew Hayward
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