The 2024 Presidential Elections are approaching in the USA. The election process will start on November 5, 2024. At this point, a significant movement is expected in the cryptocurrency markets. In past election periods, cryptocurrencies such as Bitcoin and Ethereum experienced great increases in parallel with the election results. This year’s election results also seem to have a significant impact on cryptocurrency markets. In particular, Donald Trump and Kamala Harris’ different approaches to cryptocurrencies play a key role in determining investors’ decisions and the direction of the market.
How did cryptocurrencies fare in previous US elections?
Looking at historical data, it can be seen that there were notable increases in the cryptocurrency markets after the US presidential elections. After Donald Trump was elected president in 2016, Bitcoin increased from $ 700 to $ 7000, and Ethereum also provided a return of up to 2500 percent. Similarly, after the 2020 elections, Bitcoin gained approximately 400 percent in value within a year, reaching $63,254. It is considered possible that the market will experience a kind of ‘bull run’ in these elections.
Large analysis companies such as Grayscale also report that an acceleration is expected in cryptocurrencies after the presidential elections. It is a matter of curiosity whether Bitcoin and Ethereum will exhibit a similar rise again after the 2024 elections. However, historical data suggest that such increases are possible. Donald Trump and Kamala Harris’ different attitudes towards cryptocurrencies in the 2024 elections create uncertainty for the markets. Donald Trump has a very supportive stance on cryptocurrency. Moreover, it promises to make the United States the “crypto capital of the world”.
Trump, who also supports Senator Cynthia Lummis’ proposal to create a Bitcoin reserve, may follow a cryptocurrency-friendly policy if elected. This could positively affect the price of major cryptocurrencies such as Bitcoin, and some analysts predict that the Bitcoin price could reach six-figure values during Trump’s presidency. Kamala Harris, on the other hand, takes a more cautious approach to cryptocurrencies. While the Harris administration supports the development of blockchain technology, it is not keen on large-scale cryptocurrency reform. Although it has a policy that is open to blockchain-based technologies, it is not expected to take concrete steps that will directly affect the cryptocurrency markets. In this context, it can be said that the Harris administration may have a more indirect impact on the crypto market.
There is a recession in the markets
A few days before election day, the odds of Trump’s victory dropped by 4.5 percent, according to Polymarket data. This situation created a pause in crypto markets. Price movements in Bitcoin and other altcoins are on hold and investors are waiting for the results to become clear. In particular, data on Polymarket reveals that investors are considering whether to take risks depending on the election results.
According to experts, uncertainties regarding the US elections and different policies of the candidates towards cryptocurrencies may cause sudden price fluctuations in major cryptocurrencies such as Bitcoin and Ethereum, as well as altcoins such as XRP, DOGE, TRUMP. It is known that 180,000 BTC passed into the hands of important investors in the pre-election period, and large funds continued to flow into Bitcoin through ETFs. However, this situation is expected to remain more of a wait until the election results are announced.
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