After a promising month of ‘Uptober,’ the cryptocurrency market is now anticipating ‘Moonvember.’ In the first week alone, Bitcoin [BTC] and other digital assets have shown significant growth, fueled by the post-election momentum.
Following the U.S. election win by Donald Trump, Bitcoin surged to an all-time high (ATH) of more than $76,000. Concurrently, many other top cryptocurrencies followed a similar bullish trend.
What factors contributed to this surge post the Republican Party’s victory in the U.S. election, and what does the future hold?
America’s Path to Advancement
Matthew Sigel, the Head of Digital Assets Research at VanEck, provided his perspective during a conversation with Nate Geraci on the latest episode of CryptoPrimePod.
He viewed the GOP’s win as a potential opportunity for a more favorable regulatory environment towards cryptocurrencies. Sigel expressed,
“It’s unfortunate for America to see our leadership in innovation dwindling, so I expect that trend to change.”
He criticized the SEC for penalizing individuals based on unclear regulations, advocating for a shift away from proactive legal actions and towards more credible fraud investigations. Sigel also highlighted Gary Gensler’s deviation from the standard rulemaking process as a crucial concern.
According to Sigel, there is a need to reform financial regulations to modernize the system. This involves updating obsolete transaction thresholds to adjust for inflation and reducing excessive regulatory control.
Underlying Reasons for Regulatory Resistance
Sigel pointed out that the executive order issued by the Democratic administration in March 2022 instructed federal agencies to prioritize enforcement over fostering innovation. This directive led to heightened scrutiny.
He explained that the rapid evolution of capital within the crypto space, where a simple meme can transform into a valuable asset, posed a challenge to maintaining strict economic oversight and micromanagement.
Moreover, Sigel emphasized that cryptocurrencies disrupt the established order, challenging conventional financial intermediaries and the supremacy of fiat currencies, stating,
“Bitcoin stands as a significant threat to the dominance of the dollar.”
A New Chapter for Cryptocurrencies Post-Election?
On the other hand, Haseeb Qureshi, the Managing Partner at Dragonfly, highlighted the broad repercussions of the election outcome. In an interview with Scott Melker, he mentioned,
“The gates have been opened, and they are likely to remain ajar for the cryptocurrency sector in the near future.”
Qureshi predicted that the support from the Republican side could propel a pro-crypto movement within the United States.
He also noted a significant shift in political alliances, emphasizing the renewed bipartisan backing for digital assets.
Despite the positive outlook, he stressed that the extent and speed of regulatory transformations remain uncertain, pending leadership changes in regulatory bodies and critical legislative decisions.
Retail Sector Poised to Drive an Altcoin Surge
Qureshi also forecasted a forthcoming resurgence in retail interest. While institutional investments have predominantly influenced Bitcoin’s success, he anticipated a surge in altcoins driven by retail investors.
Despite a slight uptick in retail participation earlier in the year, the full potential of a retail-led liquidity cycle is yet to be realized. Qureshi believes that a renewed engagement from retail players could trigger a significant rally in altcoins.
As November progresses, the cryptocurrency market eagerly awaits to witness if ‘Moonvember’ will usher in unparalleled growth and establish a newfound sense of optimism.