Both Harris and Johnson are predicted to push Bitcoin to all-time highs, despite the possibility that they would initially cause the market to regress.
Regardless of the outcome of the US election, Investment Bank Standard Chartered analyst Geoff Kendrick predicts that bitcoin will close the year at all-time highs.
In a September 12th Standard Chartered report, Kendrick suggested that Bitcoin could reach new all-time highs by the end of 2024 due to “positive drivers dominating regardless of the election outcome.” He stated:
I think Bitcoin ends the year higher, at new all-time highs, no matter who wins the U.S. election, with a Trump win taking it to $125,000 and $75,000 if it’s Harris.
In addition, Kendrick pointed out that the influence of the US presidential election on the course of Bitcoin’s future is not as great as it was during Joe Biden’s Democratic candidacy.
Trump vs. Harris: How Does The Election Impact Bitcoin?
Notably, the position of the former president Donald Trump toward cryptocurrencies has changed with time. Though he once called Bitcoin a “scam,” he has since had a change of heart.
In the past, Trump had attacked the Biden Administration for taking a hard line against Bitcoin and other cryptocurrencies, instead calling for the US to become the world’s “crypto capital” if re-elected.
He has continued to support the sector, most recently endorsing his sons’ upcoming crypto platform, World Liberty Financial.
.@worldlibertyfi pic.twitter.com/mwhVIzPJyq
— Donald J. Trump (@realDonaldTrump) August 29, 2024
Opponents counter that Vice President Kamala Harris’s ties to the current Biden administration could damage her standing in the cryptocurrency community. If elected, Kendrick stated that this “would likely trigger an initial price decline.”
Even though Vice President Kamala Harris has not yet unveiled a formal policy framework on the subject, reports indicate that she may be more receptive to digital assets than her predecessor, Joe Biden.
The market “should expect dips to be bought as it recognizes that progress on the regulatory front will still be forthcoming, and as other positive drivers take hold,” according to Kendrick, who cited this as reason for optimism.
Currently, Kamala Harris and Trump are now deadlocked at 49% odds on Polymarket as bettors try to forecast the next U.S. president.
Key Drivers: What Will Push Bitcoin to New Highs?
Kendrick cited “progress on relaxing regulations” as a key driver of the price increase of Bitcoin.
In particular, it is anticipated that the repeal of SAB 121, which places strict accounting requirements on banks’ holdings of digital assets, will proceed “no matter who is in the White House,” albeit at a slower pace during a Harris administration.
The report also pointed out that a re-steepening of the US Treasury curve is “building positive momentum” for bitcoin.
In the meantime, the Standard Chartered analyst stated that he anticipates a seasonal uptick in October’s inflows into spot bitcoin exchange-traded funds (ETFs).
All of this points to what other analysts agree will be a historic quarter for Bitcoin as it attempts to break through its previous peak of $73,750.07.