Buckle your seatbelts, crypto ladies and gents, November 3rd and beyond will bring strong volatility to Bitcoin and the entire cryptocurrency space.
The best way to prepare is to know what could happen if either politician wins, and then have your trigger ready on your portfolio to make your investments accordingly.
Can you prepare for it?
Prepare For a Win by Either Trump or Biden
An article from Forbes states: “A decisive swing toward either party would impact a range of sectors, from energy and finance to technology and healthcare.”
These impacts will not only hit BTC but also the entire cryptocurrency space because many new crypto companies and ICOs are bringing blockchain to those sectors: energy, finance, healthcare, etc.
The most important way to prepare is to realize that a win by Trump or Biden is also directly linked to the people they appoint, especially the people in the SEC and other branches dealing with money and therefore Bitcoin and other cryptocurrencies.
If Biden Wins
The same Forbes article above goes on to state:
“RBC’s US Equity Research analysts looked at what industries would be best suited in a Biden win and Democratic sweep of Congress. Overall, they found that a Biden win and a blue wave to go along with it was either bearish or very bearish.”
Fortunately, that may not be the case for Bitcoin, which could see a sizeable increase in price.
Shyft Network co-founder Juan Aja Aguinaco mentioned in an article that:
“Should Biden enjoy the support of the majority of both houses, it would be likely that he may ease up on the hard stance taken by the Trump administration. He may go for a more exploratory approach, and enable the development of blockchain-based solutions.”
This is because of the people he would appoint to the SEC and other monetary institutions.
How Would that affect the SEC?
You might remember Andrew Yang, the former Democratic hopeful for president. Yang did not secure the nomination but he did secure a high roll on Biden’s team.
Yang would have the ear of Biden and a number of his appointees, including those bound for the SEC.
Yang is an entrepreneur with a forward direction on blockchain and cryptocurrency. He even proposed implementing a blockchain-based voting system, which shows he understands the potential of blockchain all around.
He might also have some strong recommendations about China, which is a huge upcoming topic that Trump and Biden will handle quite differently.
How Would that affect relations with China?
The presidential win will also impact relations with China, with “Biden seen as ending the trade war, at least in terms of tariff escalation.”
A vast majority of Bitcoin mining farms are located in China. So are a number of crypto firms and ICOs.
De-escalating tensions with China could boost Bitcoin sentiment, flow and price.
If Trump Wins
How would that affect the SEC?
The SEC is currently being presided over by Chair Jay Clayton, who Trump nominated as the U.S. Attorney for the Southern District of New York. In the event Trump wins, Commissioner Hester Peirce could take over the securities regulator position.
You might have read about Hester Peirce from her being known as the “Crypto Mom” since she advocated for cryptocurrency development and regulatory leniency.
She’s even gone so far as to create a safe harbor designed to let token and blockchain firms and projects start going up before facing regulatory burdens of filings and reporting.
A Trump win would help Hester Peirce keep going with blockchain access and this would naturally affect the price.
It’s unclear who Biden would nominate to that position. He might keep Peirce or he might not.
How would that affect Relations with China?
Trump has been hard on China. He promises to continue to be hard on China.
Escalating tensions with China could see citizens of China moving more of their money into Bitcoin — which could also boost the price.
It seems Bitcoin will rise no matter what. This should be obvious. But the question remains of when and by how much.
Max Keiser, Wall Street veteran and host of The Keiser Report, summed it up nicely in an article proposing that: “Bitcoin price will ‘bolt higher’ if Biden wins, rise slower with Trump.”
His assumptions come from the above mentioned primary directions: people appointed to cabinet positions and the trade war with China.
If Biden wins, easing tensions with China and the pro-crypto appointees will boost the price higher faster. If Trump wins, Max Keiser predicts a slower rise since the trade war with China would hamper the economy even though Trump’s SEC and cabinet appointees might be okay with Bitcoin and crypto.
Keep doing your research so you can be ready for November 3rd and beyond!
The information discussed by The Coin Magazine is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Do your due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright The Coin Magazine All rights reserved.