A YouHodler analyst suggests that Kamala Harris’ improving election chances could negatively impact Bitcoin’s price due to potential stricter cryptocurrency regulations.
Points
- Kamala Harris’ election chances are improving, potentially affecting Bitcoin’s price.
- Investors fear stricter cryptocurrency regulations under a Harris administration.
- Opinion polls show Harris leading Trump in key swing states.
- Regulatory pressure from the SEC is expected to continue.
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Main content
In the lead-up to the U.S. elections in November, a YouHodler analyst has suggested that Kamala Harris’ improving election chances could negatively impact Bitcoin’s price. Investors are concerned that a Harris administration might impose stricter cryptocurrency regulations, which could stifle the market.
Online exchange YouHodler’s Ruslan Lienkha highlighted that cryptocurrency investors are watchful of Harris’ strengthening odds on multiple online prediction markets. They see a potential Harris victory as bearish for the largest digital asset by market capitalization. Lienkha explained:
“If investors believe a Democratic administration might impose stricter cryptocurrency regulations, Bitcoin’s price could suffer. Harris’s momentum in crucial swing states could intensify these concerns.”
He added that if Harris wins, the crypto market participants will continue to face pressure from the U.S. Securities and Exchange Commission （SEC）:
“With a Harris win and no major shifts expected in the regulatory landscape, the SEC will likely attempt to apply the existing traditional finance framework to the crypto market.”
Harris Making Notable Gains in Key Swing States
On Tuesday, opinion polls revealed that Harris made significant gains in key swing states. She is leading Trump in four crucial battleground states, while the former president leads in two, according to a Bloomberg News/Morning Consult poll of registered voters.
Her odds of winning have also improved on the Polymarket betting platform, rising to 44%, though she still trails Trump, who stands at 55%. However, the online prediction market PredictIt now shows Harris as the favorite to win in November, with shares of her victory selling for 52 cents, while shares for a Donald Trump victory are selling at 50 cents.
Online prediction market PredictIt favors Kamala Harris over Donald Trump. Image: PredictIt.
According to QCP Capital analysts, if Donald Trump secures victory in November, discussions regarding a sovereign bitcoin reserve and the potential for other nations to follow suit could fundamentally alter the cryptocurrency landscape.
“The establishment of a U.S. or sovereign ‘put’ on bitcoin prices may have significant implications, potentially making accumulation on dips a strategic investment approach,” QCP Capital analysts said.
Bitcoin traded around $64,684 at publication time, down 2.8% over the past day, according to The Block’s Bitcoin Price Page.
Conclusion
As the U.S. elections approach, the cryptocurrency market remains sensitive to political developments. Kamala Harris’ improving election chances could lead to stricter regulations, potentially affecting Bitcoin’s price. Investors should closely monitor these developments and adjust their strategies accordingly.