As things heat up for Kamala Harris and Donald Trump who was previously in office, the one thing that has been turning heads for some investors is the fact that Bitcoin ’s price seems to be breaking new milestones. The cryptocurrency recently exceeded the $75,000 barrier, Attaining a new all-time high, as hopes increased that Trump could be the favorite in the elections which would be taking place soon.
Tension of Elections Escalates as Bitcoin Sets New Records
We’re seeing skyrocketing demand for Bitcoin, but it has reached an all-time high of over $75,000 because of reasons other than just speculation and investor greed. For small investors, this Bitcoin has often been a refuge in times of turmoil, for example when there are economic or political disruptions. With China transforming the U.S. dollar as the world reserve currency, many investors are now looking towards Bitcoin. Its price seems to support this thesis as its price is likely to provide more and more safety as western leaders become less and less stable.
Bulls have become known as and held great center stage for the growth of the cryptocurrency market, but this is slow and Bitcoin now has become the go-to asset for a lot of people, seeking safety from the aggressive policies of multiple Western leaders, along each Western nation engaging in aggressive and expansive unsustainable programs.. Bitcoin seems to be more than just a gamble for day traders who don’t care about the long term.
Trump vs. Harris: The Reason why Election is Useful for The Market
Elections, especially United States presidential elections, have had an effect on the international financial markets, and the people contesting in the next election can alter the investor’s opinions. Now, as the 2024 election date approaches, it is no different. Kamala Harris has shown to be a strong competitor as the Democratic incumbent but has faced increased backing from Donald Trump. This has altered many investors’ opinions on Trump’s policies, especially towards economic advancement and tax cuts, which were attractive to more business-oriented investors. Harris supporting raising taxes on big businesses and government spending means there will be a different kind of market uncertainty.
Along with Trump’s growing base, the more the economy market has begun to believe in Trump’s leadership and economic direction.
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Political Unrest as a Maximizer of Demand for Bitcoin Assets
Political accidents have not been forgotten since the development of the blockchain and crypto economy, and there are no strong reasons to think that they will not remain a boost to the popularity of crypto currencies with investors in the near future. Looking at the years gone by, Bitcoin has always exhibited significant increases during times of political instability. The best example of this however would be the one that occured in the run-up to the 2020 presidential election in the United States. Once again, the market seemed to expect the November elections to bring some turbulence back to the stock markets. This forecast came true. However, what was new was the expectation that bitcoin would be able to withstand the shock.. However this year – bitcoin shined.
The Rise of Bitcoin: An Answer or Harbinger of Global Economic Woes?
The price increase of bitcoins is not just a reaction to US elections. Its reason is due to world economic concerns. Many investors are now more and more concerned with inflation, increasing interest rates, and the possibility of a global recession. Still, Bitcoin is viewed as an inflation proof investment due to its limited availability and decentralization.
Moreover, the rapid expansion of Bitcoins is in line with the growing trend of institutionalisation. Already, corporations and hedge funds are starting to view Bitcoin as one of the assets for their portfolios, thereby giving more credibility to the cryptocurrency as a financial resource. This institutional demand helped arrange the cause of the price of Bitcoin to rise high, as more investors view it as a store of value asset.
What the Future Holds: Bitcoin and the U.S. Election
If the American elections representing the two parties close, it will be a sure perspective for both the cryptocurrency market and the traditional markets to be more stiff as well. The uncertainty surrounding elections and Bitcoin may be correlated though the election cycles definitely show evidence of the seductive qualities of Bitcoin amongst more volatile markets. There exists a consensus that origins behind elections will not change, but at the same, Bitcoin scalability will increase. A Trump victory would indicate a time in which markets will return to a more laissez faire structure and lower rates, allowing traditional markets to bloom but leaving Bitcoin as an alternative asset. If however, Harris wins round two, she is more prone to increased government and fiscal expenditure that will further drive interest into Bitcoin as a hedge against inflation.
In the end, the recent rise in Bitcoin’s value shows how deeply linked politics, global economies and financial markets can get. Investors seem to understand that the future is unpredictable and turn to Bitcoin as hedge against the uncertain times ahead.
The changes that are certain to follow the election results have been discussed. It almost looks like the traditional markets as well as the crypto market are on the verge of changing significantly. Click here for the source
