Cryptos See Volatility as US Elections Draw Near
The whole world is waiting on bated breath for the results of the US election. No matter the outcome, it seems virtually every sector you can imagine will be impacted. This, believe it or not, includes the crypto sector. And in the days leading up to the elections, major tokens are reporting massive volatility.
As of this article, Bitcoin is trading at just around $68,000, a dip from its $71,000 figure from last week. This shift has been partially attributed to anxieties surrounding the election outcome. You see, against all odds, crypto has found itself more entangled with the political scene than ever before.
First, there are the ways that crypto and the industry behind it have been used as political tools. Earlier this year, Donald Trump became the first US Presidential candidate in history to accept cryptocurrency as a form of donation. This was followed by months of the former president aligning himself with the larger blockchain space. We got everything from Bitcoin-themed sneakers to an appearance at a Bitcoin convention just weeks after the failed assassination attempt. His opponent Kamala Harris has also taken a stance on supporting crypto, though a more toned-down one.
Meme coins have also been massive drivers of the crypto market as much as they are markers of pop culture. Existing tokens like Dogecoin and PEPE have dominated the industry while new offerings have raised millions in presale figures. As Hyunsoo Kim writes, investors are very enthusiastic about scoping up new meme coins (https://www.business2community.com/kr/cryptocurrency/best-meme-coins). Then there were the cryptos that were created simply for the election cycle. Tokens themed around Trump, his assassination attempt, and even Harris and her public persona have found an audience among passionate supporters and even investors trying to cash in.
But in the last few days, major tokens and political meme coins have been on shaky ground. As final predictions come in, some investors are selling off tokens in anticipation of a slump while others are doing the opposite. This makes sense as, no matter who wins, the market will react. Some analysts have said, for example, that several tokens will see a successful run in 2025 should Harris become president.
At the same time, the market support of TrumpCoin should be considered if Trump becomes president. The crypto market is no stranger to volatility but it seems that in this case, it is gearing up for something bigger.
Beyond this month, it is clear that the relationship between politics and blockchain will never be the same. If the next US president sticks to their promise of supporting the industry, we will see many more years of pro-crypto regulation that will trigger a new era of growth. The type of growth that would have been unthinkable years before.
By the time the next elections roll around, market movements will be sharper and the stakes will be higher for candidates to align themselves with the industry.
