As the U.S. election countdown reaches its final four days, Bitcoin’s price surge is making waves, coming within just 2% of its all-time high at the current moment.
Yet, the burning question on everyone’s lips is: what impact will the election outcome have on the future of Bitcoin and the wider cryptocurrency sector?
During a recent chat with Yahoo Finance, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, shared some thoughts, stating,
“The most crucial thing for Bitcoin is the occurrence of the election.”
Hougan stressed that no matter whether Donald Trump or Kamala Harris emerges victorious, the regulatory landscape for Bitcoin is steadily improving—a factor potentially influencing recent price fluctuations.
The Trump Factor
Hougan admitted that a Trump win may not completely alter Bitcoin’s future, but it could hasten its progress. He said,
“In the short term, a Trump win is more favorable for crypto than a Harris win, although Bitcoin can succeed without Washington’s support.”
The executive highlighted growing institutional interest, increasing flows of exchange-traded funds (ETFs), and rising adoption as factors set to drive Bitcoin to new highs.
Recently, CryptoCrypto reported that Bitcoin ETF inflows reached a five-month peak, underscoring strong demand as investors gain confidence in the asset’s long-term prospects.
Altcoins Benefit from Trump’s Victory
While Bitcoin appears well-positioned regardless of the election outcome, Hougan anticipates a significant rally in altcoins if Trump emerges victorious.
Expressing optimism, he mentioned,
“We expect Bitcoin to surpass $100,000.”
Hougan stated that Bitcoin’s designation as a commodity by the SEC and CFTC provides a level of certainty. The emergence of ETFs adds an extra layer of assurance.
Nevertheless, numerous altcoins still grapple with unclear regulatory treatment. The executive anticipates a change in SEC leadership under a Trump administration.
This potential shift in leadership could clarify regulations, encourage institutional adoption, and fuel growth in the altcoin market.
Corroborating this view, an analysis from Galaxy Digital suggested that altcoins could outperform under Trump and face increased regulatory uncertainties under a Harris administration.
A Bloomberg survey likewise suggested that a Trump administration might be more favorable to investors and the crypto market, whereas a Harris administration could lean towards housing policy reforms.
The Road to $200,000 for Bitcoin
Amidst the ongoing political and crypto dialogues, Hougan also delved into a crucial discussion on X (former Twitter), outlining why Bitcoin does not necessarily need a dollar collapse to hit $200,000.
He pointed out that Bitcoin’s potential as a “store of value” and its attractiveness in the face of fiat devaluation are key growth drivers.
Hougan suggested that if Bitcoin fully establishes itself as an institutional asset and the “store of value” market expands, it could exceed a seven-figure valuation.
With the election looming, regulatory clarity, institutional interest, and Bitcoin’s ever-growing allure paint a promising outlook for the cryptocurrency.