As the U.S. election draws near, Bitcoin is on the verge of reaching its all-time high, with just a 2% gap as of now.
One burning question that everyone is pondering is the impact of the election outcome on the future of Bitcoin and the wider cryptocurrency sphere.
In a recent interview with Yahoo Finance, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, shared his thoughts on the matter, stating,
“I believe that the primary necessity for Bitcoin is the occurrence of the election.”
Hougan underlined that regardless of whether Donald Trump or Kamala Harris emerges victorious, the regulatory landscape for Bitcoin is gradually improving, which is likely influencing the recent price surge.
Potential Boost from a Trump Victory
The CIO acknowledged that a Trump win might not radically alter Bitcoin’s prospects but could expedite its growth. He commented,
“In the short term, a Trump triumph is more favorable for crypto than a Harris victory, although Bitcoin is not reliant on Washington for its success in the long run.”
Hougan pointed out the increasing institutional interest, rising ETF inflows, and growing adoption as factors poised to drive Bitcoin to new peaks.
Recent reports indicated a surge in Bitcoin ETF inflows to a five-month high, indicating a strong demand as investors become more optimistic about the asset’s future growth.
Altcoins Poised for Success Under Trump
While Bitcoin appears solid irrespective of the election outcome, Hougan forecasted a significant rally in altcoins if Trump prevails.
He expressed confidence, stating,
“We are looking at a Bitcoin price exceeding $100,000.”
Hougan highlighted Bitcoin’s secure regulatory status as a commodity under the SEC and CFTC and the added layer of trust brought in by ETFs.
Nonetheless, many altcoins still deal with uncertain regulatory status. The executive hinted at potential changes in SEC leadership under Trump, which could clarify regulations and propel institutional adoption, fueling growth in the altcoin sector.
Corroborating this viewpoint, an analysis by Galaxy Digital suggested that altcoins might perform better under a Trump administration and face elevated regulatory uncertainty with a Harris win.
Furthermore, a Bloomberg survey hinted that a Trump-led government could be more favorable for investors and the crypto market, while a Harris administration might lean towards housing policy reform.
The Road to $200,000 for Bitcoin
Amid the ongoing debates surrounding politics and cryptocurrencies, Hougan also tackled a critical discussion on X (previously Twitter), explaining why Bitcoin doesn’t necessarily need a collapse of the dollar to hit the $200,000 mark.
According to him, Bitcoin’s status as a “store of value” and its attractiveness amid fiat depreciation are pivotal factors for its growth.
The executive suggested that if Bitcoin solidifies its position as an institutional asset and the market for “store of value” expands, it could potentially surpass a valuation in the seven figures.
With the election looming, regulatory clarity, institutional enthusiasm, and Bitcoin’s increasing allure paint a bright picture for the future of the cryptocurrency.