Is the Fate of Bitcoin and Cryptocurrencies Tied to the US Presidential Elections?

• Ed Moya notes that the political landscape in the United States could be a defining theme for the digital market.
• The role of crypto as a topic of debate and contention is not limited to the US, but has become a focus in elections worldwide, including South Korea and Thailand.
• Regardless of political differences, it is clear that Bitcoin and the crypto market have become part of the political dialogue in the US.

What is the role of Bitcoin and cryptocurrencies in the 2024 US presidential elections?

Cryptocurrencies and the 2024 US Elections

In recent weeks, the question of whether crypto assets provide a safe haven from financial risk or are part of a risky asset class has been frequently debated.

Bitcoin and cryptocurrencies are stuck between certain prices, and these uncertainties contribute to unstable price movements.

Despite these uncertainties, Ed Moya, Senior Market Analyst at OANDA, notes that the digital market could be defined by the political landscape in the United States.

According to Moya, the upcoming US presidential election could be the key to how Bitcoin will perform. All eyes are on Florida Governor Ron DeSantis, who is seen as determined to “protect” Bitcoin. DeSantis’ open support for Bitcoin and his presidential ambitions have garnered attention in the crypto community.

The role of crypto as a topic of debate and contention is not limited to the US, but has become a focus in elections worldwide, including South Korea and Thailand. Even President Joe Biden has mentioned this during debt agreement negotiations.

Bitcoin and Cryptocurrencies Have Become Part of US Politics

This potential narrative is strengthened by the presence of two major candidates in the 2024 US presidential race who do not shy away from including Bitcoin in their political discourse.

Governor DeSantis is known for his strong support for Bitcoin and his sharp criticisms of Central Bank Digital Currencies (CBDCs), which aligns with the decentralization philosophy of crypto.

Efforts to enact Bitcoin-friendly laws in Florida have been successful. In fact, in May 2021, it passed a bill allowing for unlicensed crypto trading. The 2022 budget proposal included blockchain funding for state agencies, which is a sign of its commitment to the crypto issue.

On the other side, Democratic candidate Robert F. Kennedy Jr. also presents a compelling argument for Bitcoin. Known for defending the crypto sector against perceived threats such as banking crises and potential oppressive regulations from the White House, Kennedy’s stance represents the resistance of the digital asset community to regulation and institutional control.

However, Kennedy’s controversial reputation has created some hesitation among the crypto community in fully embracing him as their spokesperson.

Regardless of political differences, it is clear that Bitcoin and the crypto market have become part of the political dialogue in the US, and the fate of crypto could depend on the outcome of the 2024 presidential elections.

As this narrative develops, investors will undoubtedly closely monitor how political winds could affect the digital market.