Please ensure Javascript is enabled for purposes of website accessibility
Cryptocurrency Markets, Promoted by Trump, Brace for Election Volatility
d8a347b41db1ddee634e2d67d08798c102ef09ac
By The New York Times
Published 2 weeks ago on
November 5, 2024

Costumed characters pass the Nasdaq MarketSite during the Coinbase IPO, in New York's Times Square, Wednesday, April 14, 2021. Wall Street will be focused on Coinbase Wednesday with the digital currency exchange becoming a publicly traded company. (AP/Richard Drew)

Share

Getting your Trinity Audio player ready...

SAN FRANCISCO — For months, cryptocurrency investors have been eagerly awaiting the presidential election, convinced that a victory for former President Donald Trump would be good for bitcoin.

On the campaign trail, Trump has promoted himself as a crypto believer, raising hopes that a Republican victory Tuesday could send the prices of digital currencies soaring. Bitcoin surged to $73,000 late last month, close to its record, after an influential crypto-powered betting market gave Trump a 67% chance of winning the election.

The election results are poised to cause more volatility. Over the past week, bitcoin’s price fell 7% to roughly $68,000 as the betting odds shifted to give Trump a narrower lead over Vice President Kamala Harris. Many crypto investors are hoping the price could rebound this week.

“We expect bitcoin to break all-time highs on a Trump win,” the investment management and research firm Bernstein said in a report Monday, predicting that the digital currency could rise as high as $80,000 or $90,000. But if Harris wins, the report said, bitcoin’s price could fall as low as $50,000.

The election Tuesday is easily the most important political event in crypto’s history. For the first time, the industry’s leading companies have mobilized to invest enormous sums, funding a network of super political action committees that have spent tens of millions of dollars in key congressional races. The results could determine whether crypto companies flourish in the United States, or end up decamping to other countries in the face of a regulatory crackdown in Washington.

The market for bitcoin and other digital assets is known for its rapid swings. Early this year, bitcoin’s price climbed after the federal government allowed traditional financial firms to offer a new investment vehicle directly tied to the bitcoin market. The new products, a type of exchange traded funds, were a hit on Wall Street and attracted billions of dollars. In March, bitcoin reached a record price of $73,750.07, according to CoinMarketCap, a website that tracks crypto prices.

2024 Election Is Pivotal for Crypto

Since then, the 2024 U.S. election has emerged as a pivotal moment for crypto. The Biden administration has aggressively pursued crypto companies for violating federal securities rules, bringing lawsuits against the Coinbase exchange and other large U.S. firms. In response, much of the industry has thrown its support behind Trump.

Trump was once a crypto skeptic who dismissed bitcoin as “a scam.” But as crypto companies began donating large sums to influence the election, he warmed to the industry, promising to end the government’s crackdown.

This summer, Trump spoke at a bitcoin conference in Nashville, Tennessee, and vowed to turn the United States into “the crypto capital of the planet.” He also started his own crypto business, World Liberty Financial, and aggressively promoted it on social media.

In the run-up to the election, a set of super PACs financed by the crypto industry has spent more than $100 million to influence congressional races across the country. The aim is to install the most pro-crypto Congress in history — legislators who would advance the industry’s agenda in Washington and stop the Securities and Exchange Commission from pursuing crypto companies.

The political spending appears to have influenced both parties. In recent days, Harris has made overtures to the crypto industry, suggesting that she would also adopt a softer approach to regulation.

Still, Trump “is seen as the pro-crypto candidate,” the Bernstein analysts wrote, while Harris is expected to continue the “hawkish crypto stance” of the Biden administration.

This article originally appeared in The New York Times.

By David Yaffe-Bellany
c. 2024 The New York Times Company

RELATED TOPICS:

DON'T MISS

What to Know About Pam Bondi, Trump’s New Pick for Attorney General

DON'T MISS

North Korean Leader Says Past Diplomacy Only Confirmed US Hostility

DON'T MISS

Democrats Strike Deal to Get More Biden Judges Confirmed Before Congress Adjourns

DON'T MISS

Newsom Gaslights on Potential Gas Price Hikes in Fresno Visit

DON'T MISS

Automakers to Trump: Please Require Us to Sell Electric Vehicles

DON'T MISS

President Biden Welcomes 2024 NBA Champion Boston Celtics to White House

DON'T MISS

Ohtani Makes History With 3rd MVP, Judge Claims 2nd AL Honor

DON'T MISS

Trump Chooses Pam Bondi for Attorney General Pick After Gaetz Withdraws

DON'T MISS

Average Rate on a 30-Year Mortgage in the US Rises to Highest Level Since July

DON'T MISS

Cutting in Line? American Airlines’ New Boarding Tech Might Stop You at Now Over 100 Airports

UP NEXT

North Korean Leader Says Past Diplomacy Only Confirmed US Hostility

UP NEXT

Democrats Strike Deal to Get More Biden Judges Confirmed Before Congress Adjourns

UP NEXT

Newsom Gaslights on Potential Gas Price Hikes in Fresno Visit

UP NEXT

Automakers to Trump: Please Require Us to Sell Electric Vehicles

UP NEXT

President Biden Welcomes 2024 NBA Champion Boston Celtics to White House

UP NEXT

Ohtani Makes History With 3rd MVP, Judge Claims 2nd AL Honor

UP NEXT

Trump Chooses Pam Bondi for Attorney General Pick After Gaetz Withdraws

UP NEXT

Average Rate on a 30-Year Mortgage in the US Rises to Highest Level Since July

UP NEXT

Cutting in Line? American Airlines’ New Boarding Tech Might Stop You at Now Over 100 Airports

UP NEXT

MLB Will Test Robot Umpires at 13 Spring Training Ballparks Hosting 19 Teams

Newsom Gaslights on Potential Gas Price Hikes in Fresno Visit

10 hours ago

Automakers to Trump: Please Require Us to Sell Electric Vehicles

11 hours ago

President Biden Welcomes 2024 NBA Champion Boston Celtics to White House

11 hours ago

Ohtani Makes History With 3rd MVP, Judge Claims 2nd AL Honor

11 hours ago

Trump Chooses Pam Bondi for Attorney General Pick After Gaetz Withdraws

12 hours ago

Average Rate on a 30-Year Mortgage in the US Rises to Highest Level Since July

12 hours ago

Cutting in Line? American Airlines’ New Boarding Tech Might Stop You at Now Over 100 Airports

12 hours ago

MLB Will Test Robot Umpires at 13 Spring Training Ballparks Hosting 19 Teams

13 hours ago

Death Toll in Gaza From Israel-Hamas War Passes 44,000, Palestinian Officials Say

13 hours ago

Jussie Smollett’s Conviction in 2019 Attack on Himself Is Overturned

13 hours ago

What to Know About Pam Bondi, Trump’s New Pick for Attorney General

NEW YORK — Pam Bondi, the former Florida attorney general, was chosen Thursday by Donald Trump to serve as U.S. attorney general hours after...

9 hours ago

9 hours ago

What to Know About Pam Bondi, Trump’s New Pick for Attorney General

10 hours ago

North Korean Leader Says Past Diplomacy Only Confirmed US Hostility

10 hours ago

Democrats Strike Deal to Get More Biden Judges Confirmed Before Congress Adjourns

10 hours ago

Newsom Gaslights on Potential Gas Price Hikes in Fresno Visit

President Joe Biden with Mary Barra, the chief executive of General Motors, at the Detroit Auto Show, Sept. 14, 2022. President-elect Donald Trump has promised to erase the Biden administration’s tailpipe rules designed to get carmakers to produce electric vehicles, but most U.S. automakers want to keep them. (Doug Mills/The New York Times)
11 hours ago

Automakers to Trump: Please Require Us to Sell Electric Vehicles

11 hours ago

President Biden Welcomes 2024 NBA Champion Boston Celtics to White House

11 hours ago

Ohtani Makes History With 3rd MVP, Judge Claims 2nd AL Honor

Former Florida Attorney General Pam Bondi, speaks before Republican presidential nominee former President Donald Trump arrives to speak at a campaign rally at First Horizon Coliseum, Saturday, Nov. 2, 2024, in Greensboro, NC. (AP/Alex Brandon)
12 hours ago

Trump Chooses Pam Bondi for Attorney General Pick After Gaetz Withdraws

Help continue the work that gets you the news that matters most.

Search

Send this to a friend