Donald Trump
The cryptocurrency market has recovered from the worst rout of the year.
Bitcoin
Bitcoin
Ethereum
Cardan
Solana
Dogecoin
BNB
XRP
Analysts say this could be just the first step in a major recovery that will gain full force after the election.
According to Michael Terpin, founder of crypto venture capital firm Transform Ventures, last week’s crypto rout was the result of a typical Bitcoin pullback following the halving and the end of the yen carry trade.
He believes that both of these risks have now been eliminated.
“Now that the Bank of Japan has indicated it will not raise interest rates further – and Jump Trading will be running out of coins to sell, just like Germany did a few weeks ago – I don’t see the price going much below $50,000 (other than a quick fuse), maybe ever again,” Michael Terpin said.
Looking ahead, Terpin predicts a major surge in Bitcoin after the election, especially if Trump retakes the Oval Office.
“October and November are historically strong months for Bitcoin, especially in the year of the halving and the year after,” he said, adding that a Trump presidency could cause a “rush of new buyers” and push the price of Bitcoin “above $100,000.”
Meanwhile, BitMEX co-founder Arthur Hayes expects the cryptocurrency to skyrocket regardless of who wins the election. In fact, he thinks Bitcoin could reach “hundreds of thousands of dollars, maybe $1 million.”
Hayes is banking on the idea that both parties will “print” more money to increase the budget deficit, thereby promoting the rise of alternative assets.
Trade and protection against Trump’s reckless federal spending
Trump has long been considered a pro-crypto presidential candidate, and this is evident in how the market is reacting to election developments.
For example, after the failed assassination attempt on Trump’s life – which increased his chances of taking control of the Oval Office in November – the price of Bitcoin rose 10% in just three days.
The reason is that Trump is seen as less of a “bad cop” to the crypto community than the Biden administration – and there’s a good reason for that.
Ahead of this year’s election, Trump became the first presidential candidate to accept cryptocurrency contributions. A few weeks ago, he also stopped short of promising to create a federal bitcoin reserve.
“For too long, our government has violated the cardinal rule that every bitcoiner knows by heart: Never sell your bitcoin,” Trump said.
Cryptocurrency industry lobbyists have actively supported Trump to counter Biden’s stricter regulatory stance.
Cameron and Tyler Winklevoss, co-founders of cryptocurrency exchange Gemini, jointly contributed $1.6 million in Bitcoin, while Kraken co-founder Jesse Powell donated $845,000 in Ether.
In contrast, Hayes’ prediction of a million dollars in Bitcoin is based less on the regulatory outcome of an election than on the cryptocurrency’s fundamental promise as a hedge against inflation.
He believes that neither political party is committed to balancing the national budget. He believes that Washington will continue to run up the bill and, if necessary, print more money to bail out the economy.
“Like any politician, regardless of political affiliation or economic beliefs, Harris will call on Yellen to use the monetary tools at her disposal to avert a financial crisis,” Hayes said.
“Of course, that means the money printer will go brrr one way or another.”
