Regulation
Bitcoin is unlikely to be affected by the US presidential debates, analysts predict
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Bitfinex analysts have assessed that the price of Bitcoin (BTC) is unlikely to be significantly affected by the outcome of the American presidential debate between Joe Biden and Donald Trump on June 27. However, the broader cryptocurrency market and tokens related to presidential candidates, labeled by analysts as PolitiFi tokens, may see some changes in the short term.
“Both Biden and Trump have well-documented positions on cryptocurrencies and financial regulations. The market has already factored in their positions, so any reiteration of these views during the debate is unlikely to introduce new volatility,” Bitfinex analysts explained.
In particular, Bitfinex analysts said it is important to note how Trump has positioned himself as the “Crypto President.” As a result, this could have a direct impact on the coins associated with both presidential candidates.
“There could be significant movements for the ‘Politifi’ tokens during and after the debate depending on their performance, as these tokens have themselves turned into speculative assets in terms of election results.”
Furthermore, although the cryptocurrency regulatory framework might be mentioned during debates, the specifics of such regulations usually emerge from detailed policy announcements and legislative processes. Therefore, no substantive discussions on the regulation of cryptocurrencies in the United States could emerge from the debate.
However, while potential future regulatory prospects are discussed during the debate, they typically do not provide immediately actionable information that moves markets in a meaningful way.
“What could be interesting and impact the market is the discussion around capital gains taxes in general and cryptocurrency taxation policies in particular,” the analysts concluded.
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