How Will the U.S. Election 2024 Results Impact the Crypto Market?
Mustafa Mulla2 Nov 20242 min read
As the 2024 U.S. presidential election draws near, the crypto market is on edge, with Bitcoin and other major coins experiencing volatility. Meanwhile, prediction markets show a close race between Vice President Kamala Harris and former President Donald Trump, and many crypto analysts expect the election’s outcome to have a direct impact on digital asset prices.
Trump Win Could Trigger a Market Rally
Prominent crypto trader Emperor recently shared his views on how the election results could impact the crypto market. He predicts that if Trump wins, there may be an initial market rally, driven by Trump’s pro-crypto stance and his promise to clarify regulations for digital assets.
This assurance could boost market confidence, especially for Bitcoin, which often reacts strongly to changes in U.S. policy.
Recent data shows that Trump’s odds of winning have slipped to 57.1% on Polymarket, a prediction market, down from 60%. In contrast, Harris’s chances have risen to 42.9%, reflecting a shift in momentum.
The Sell-the-News Phenomenon
However, Emperor also cautions that a wave of profit-taking could follow a Trump victory. Many retail traders might sell their assets soon after an initial rally, leading to a “sell-the-news” dip. This could trigger a temporary price drop as traders react to the news.
According to Emperor, this phase might be followed by a period of quiet as retail interest declines and the market stabilizes.
Is a Bull Run Coming?
After the initial dips and quiet phase, Emperor suggests that the crypto market may shift toward accumulation, where long-term investors begin to buy up assets at lower prices. If Trump follows through on his crypto-friendly policies, this could lead to a sustained bull run as the regulatory outlook becomes clearer.
Experts support this view, pointing out that regulatory certainty could attract more institutional and retail investment in the coming years.
Meanwhile, a significant $38 million bet was recently placed on Trump’s victory, indicating strong confidence in his potential win and its positive implications for crypto. A Trump presidency could strengthen sentiment among pro-crypto investors and drive demand for digital assets.
Do you think a Trump presidency would truly benefit the crypto market? We’d love to hear your opinions.
