Today’s presidential elections in the United States could have a significant impact on the crypto sector.
This is what emerges from a report from HTX published yesterday.
The Report: The Relationship Between US Elections and Impact on Crypto Price
The lengthy report analyzes the interactions between the crypto world and the 2024 US presidential elections.
First, it highlights how Bitcoin and cryptocurrencies have become a key theme in this year’s presidential race, due to the fact that crypto supporters represent a voting bloc to be reckoned with in American politics.
The report analyzes various factors behind the growing importance of Bitcoin and cryptocurrency in US politics, including the erosion of real wages caused by inflation, challenges to the dollar’s global dominance, US voters’ growing interest in cryptocurrencies and government regulations. strategies for the crypto industry.
Also explore the presidential candidates’ different stances regarding the crypto world and how their attitudes could shape future policies and market expectations.
Predictions on the USA elections: what will be the impact on the crypto world?
The HTX report predicts that if Donald Trump wins, the regulatory environment for crypto could become clearer and more relaxed, which would support the incubation and growth of crypto startups.
For example, new spaces could open up for crypto company IPOs, and the framework could become more favorable for the entry of traditional investment institutions. Wealth effects could also increase and improve the financial environment, with DeFi favored to quickly enter the traditional financial market.
It’s worth noting that, according to the latest data, Trump actually appears to have an advantage over Harris, so that might be the more likely scenario, even though Harris has in recent days regained some of the disadvantage accumulated over recent months .
The report, however, does not make precise predictions in the event of Kamala Harris’ victory.
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HTX Ventures
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The report was produced by HTX Ventures, the global investment division of HTX.
HTX is the new name for Huobi, a Chinese crypto exchange founded in 2013, then internationalized after the Chinese crypto ban. She is now based in Singapore.
There was a time when Huobi was one of the leading crypto exchanges in the world, but the 2021 Chinese ban had a strong negative impact on its customer base.
Currently, HTX, with less than two billion daily spot trading volumes, is no longer even among the top 20 in the world in terms of trading volumes. Nevertheless, it remains one of the top ten in the world in terms of usage.
It is still a reference point for Asian crypto markets, although even in Asia its use is now overtaken by other exchanges.
Trump versus Harris: who will be the winner of the US presidential elections?
The report recalls that both presidential candidates, Donald Trump and Kamala Harris, leveraged cryptocurrencies in their election campaigns to try to gain support from the crypto community.
Kamala Harris has proven to be more supportive of cryptocurrencies than current President Biden, but she has made only limited statements about the crypto policies she would adopt if elected. Additionally, she has been very cautious on key issues such as taxation, Bitcoin mining, and self-custody.
Donald Trump, on the other hand, has shown strong interest in the digital asset industry, going so far as to assert that he intends to make the United States the crypto capital of the planet, and the global Bitcoin superpower.
He has also previously proposed a series of policy ideas on cryptocurrencies, including creating a strategic Bitcoin reserve, creating a presidential advisory council on cryptocurrencies, and banning the Federal Reserve from ‘issue a digital currency.
Cryptocurrencies and American politics
The report also identifies four reasons why cryptocurrencies have come to the forefront of the American political scene.
The first is that cryptocurrencies are becoming increasingly important to the United States.
In fact, regardless of which candidate wins, it is likely that the US deficit and debt burden will worsen, and in this case, Bitcoin can serve as an effective tool for governments and investors to protect themselves from the inflation. According to the report, Bitcoin in particular has potential strategic importance in the face of debt and inflationary pressures.
The second reason is that stablecoins can help expand the international influence of the US dollar, which is also of interest to American voters.
The third reason is the crypto sector’s reaction to the Biden administration’s strict regulations, as a more relaxed regulatory framework is now called for.
The final reason is that crypto companies have become among the top contributors to political donations in 2024.
Predictive markets
The report also analyzes so-called “on-chain prediction markets.”
However, these are betting platforms that use smart contracts and decentralized ledgers to create transparent global markets, ensuring they are fair and tamper-proof.
The main one is Polymarket, which guaranteed 80% of the volume generated by crypto betting on the US presidential elections. It has also been adopted by many traditional media outlets as an alternative news source, even surpassing Web2 competitors.
