From Nasdaq OMX Group:

Bitcoin has breached the $50,000 ceiling, up 111% in the past year, with half of young voters considering candidates’ positions on crypto. The election cycle’s impact on crypto is uncertain, with experts debating its influence. A new administration could affect Bitcoin’s market, yet global reach and use as a hedge make it resilient.

The election cycle’s influence on Bitcoin rests on candidates’ positions. President Joe Biden favors exploring a central bank digital currency (CBDC) and has proposed a 30% tax on the cost of electricity to mine Bitcoin. Donald Trump initially criticized crypto, but has since released digital collectibles on the Bitcoin blockchain. Energy policies could also influence Bitcoin’s price.

Bitcoin’s trajectory may not correlate to the election cycle, as it’s a non-correlated asset not moved by Presidents. Factors like supply-and-demand, the rate of inflation, and economic outlook have a greater impact. External factors, like the upcoming Bitcoin halving event, will shape Bitcoin’s trajectory regardless of the U.S. election.

Bitcoin’s trajectory will be shaped by a mix of internal and external factors, beyond just U.S. politics, with events like the halving leading to price appreciation. Regardless of the election outcome, Bitcoin’s global nature and unique economic mechanisms suggest a positive future is ahead. Understanding of Bitcoin by a candidate could yield additional votes, especially in swing states.



Read more: Election 2024: 5 Ways It Could Help Bitcoin Continue To Skyrocket