A chief executive says the outcome of the US presidential election will have little impact on cryptocurrencies, despite the view of other market participants that Bitcoin has become a bet on Donald Trump’s victory.
Bloomberg News reported on Thursday that Bitcoin had been considered a Trump transaction due to the Republican candidate’s ties to the crypto industry, which spent a lot of money to advance his agenda on the campaign trail. Alex Tapscott, chief executive of Ninepoint Digital Asset Group, said in an interview with BNN Bloomberg on Friday that the consensus in prediction markets is that as the price of Bitcoin rises, so do Trump’s chances of winning the election. .
“We’ve actually done some analysis and it basically shows that there’s a pretty weak correlation between the price of Bitcoin and Trump’s chances of winning the election on any given day. Bitcoin is more likely to be correlated with several other assets,” he said.
“Unsurprisingly, things like his Trump Media Corporation are more likely to be highly correlated. So for me, the election is sort of a non-event for crypto, which I think is a bit of a contrarian.
According to Bloomberg News, Trump considers the United States a crypto capital of the world, while Harris has pledged to support regulation of the sector. However, the two US presidential candidates would mark a shift from the crackdown on the industry that has taken place under President Joe Biden.
Tapscott said that in his opinion the president’s impact on the crypto market is “overrated” and notes that Kamala Harris is “not Joe Biden.”
“One of the things that happened during this whole election period is that the window really changed. And now you see both parties actively courting this vote. It’s not just because the industry is spending a lot of money,” he said.
Instead, crypto-related issues have become important to a large number of voters, Tapscott said. He pointed out that around 25% of Millennials and Gen Z own crypto assets and that this group has a “point of view on this technology.”
