Regulation
5 Ways the 2024 Election Could Impact Cryptocurrency Value
Cryptocurrencies are digital assets that are dependent on public interest and perception. As such, their value is always influenced by how people believe their future development will go or how the economy is doing, in general. It is therefore not surprising to hear that the outcome of elections, especially such polarizing elections where candidates have such opposing views on the future of cryptocurrencies, could affect the value of the asset in question. With that in mind, here is a brief analysis of the ways in which the 2024 election year could affect the value of cryptocurrencies.
1. Memes and popular culture
First of all, no one inspires more memes than Trump, and with Elon Musk on his side (who is vocally supporting the candidate), this sets the stage for a meme coin explosion. So if you’re looking for the best meme coins to invest in, now might be the time to start doing your research.
The fact is that, at the moment, in the months and weeks leading up to the election, interest in these memes is growing, regardless of what the polls suggest.
Also, the thing about memes is that they are inspired by major events, and this election has been tumultuous and beyond all expectations. From a major candidate dropping out to a poor debate performance to an assassination attempt, this election has been a handful. Now, making fun of some of these events is really in bad taste, but that has never stopped memesters.
Sure, there are no meme coins about these specific events, but this chain reaction drives the entire industry forward. Just think about how the explosion of Bitcoin in 2017 made everyone pay attention to other coins. Before that, some people even knew what Bitcoin was. After that, everyone knew about Ethereum, Neo, and even Dogecoin.
According to technology writer Kane Pepi, the most popular cryptocurrency coins will get the biggest interest increase (and the biggest growth).
2. Candidate positions
The next issue that will have a huge impact on this is the position of individual candidates. For example, it is no secret that Kamala Harris has made some negative statements about cryptocurrencieswhile Trump demonstrated his full support.
However, it is worth mentioning that this all happened before she became a candidate. Cryptocurrency is currently a big legislative issue, which means that as a presidential candidate, her views need to be more nuanced.
Her advisers are said to be approaching the cryptocurrency industry with a “pro-business” message, while her husband is labeled by some as a “crypto guy.” Trump, on the other hand, has always been pro-crypto and is currently doubling down on his unwavering support for the sector.
At the same time, as we’ve said, it’s not just about the plans and actual policy, but about public perception. Harris is still seen as an anti-crypto candidate at the moment, and unless that public perception is there, the better she does in the polls, the more volatile things will be for exchanges.
Now, the latest messages from his corner seemed promising and this has had a stabilizing effect on the market, but we still have to wait and see the long-term effects.
3. Future regulation
Another big question is whether cryptocurrency regulation will become a partisan issue in the near future. Right now, things are complex enough as they are.
First, Republicans in Congress are more skeptical of cryptocurrency regulation than their Democratic counterparts. In general, the Republican Party is generally skeptical of government interference and insists on greater independence in financial transactions and reporting. This type of mindset can be reflected in everything from cryptocurrency regulation to how individual states treat online casinos.
Democrats, on the other hand, are pushing harder for tougher regulation, citing the FTX fiasco as the strongest reason.
It is also worth mentioning one thing: cryptocurrency developers are lobbying and donating to both sides. Therefore, neither side is willing to take a strong anti-crypto stance.
The most important thing to keep in mind is that there is no clear polarization among voters along party lines.
4. Cryptocurrencies are not a big voting issue
While this issue is important to voters, it is not something they will vote on. There are almost no single-issue voters motivated by cryptocurrency regulation; it is always something else that determines their vote.
The most important issues are inflation and prices, followed closely by health care and immigration. Jobs and the economy, climate and environment, national security and abortion follow closely behind.
This has several effects. First, when it comes to crypto regulation, for the most part, it is radio silence. It is something that politicians can mention as a side note, but it will not be one of their talking points. Even if the voter does not agree with them on the issue of crypto regulation, they will still vote for them if they align on other factors.
This also means that there is no pressure on politicians to go one way or the other. Sure, a large donation from a developer might sway a politician in one direction, but it’s not like they will feel pressured to support regulation for fear of losing voters. Even in a scenario where they are swayed, it’s usually one-sided in favor of cryptocurrency.
5. Bitcoin Price Is Higher Than Previous Elections
One of the most important things to mention is that the price of Bitcoin is significantly higher than in the previous elections. Sure, one could attribute this to the maturity of Bitcoin, but one must also keep in mind that there are other factors at play.
First, there are more cryptocurrency holders than ever before. Voters expect their wallets to include cryptocurrency, while many voters who have never shown any interest in cryptocurrency are now showing a willingness to learn more about cryptocurrency.
Also, keep in mind that while there are other cryptocurrencies out there, voters are mostly focused on Bitcoin. This is because it has a higher face value and it is much easier to get people to invest in something they already know.
Finally, keep in mind that cryptocurrency is an international issue, which means that US politics could have a huge impact on it.
This year’s elections will impact cryptocurrencies in many different ways.
So, despite the fact that Harris has not made a direct statement as a presidential candidate, the public perception is still that she is anti-crypto, while Trump is very vocal in his support. Secondly, this is not a major voting issue and positions on cryptocurrencies are not determined along party lines. What happens with cryptocurrencies so far remains to be seen.