The cryptocurrency world has witnessed a sweeping market rally across different coins as the U.S. holds its presidential election. Flagship cryptos, Bitcoin, the first memecoin Dogecoin, and dog-themed Shiba Inu have become the leading coins with massive gains. The performance of these coins, particularly Bitcoin, follows historical patterns.
Bitcoin Price Spike Follows Historical Path
As per market data, Bitcoin price rapidly climbed from $67,350 on Election Day to above the $70,000 level. As of this writing, BTC is exchanging hands for $70,376.42, a 4.48% increase. The coin’s market volume soared by 21.09% to $44.90 billion to complement the growth. The spike in trading volume signals renewed investors’ interest in the leading digital currency.
Bitcoin’s bullish performance has always coincided with the U.S. presidential election. Historically, Bitcoin has always flipped its all-time high (ATH) after every election, and it appears set to repeat the same. This time, the candidates on the ballot appear to be an added incentive for the coin to test a new ATH.
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During the campaigns, former President Donald Trump adopted a pro-crypto stance and proclaimed support for the industry. He assured crypto investors he would end Kamala Harris’ war on Bitcoin if he emerged as president.
Election Effect on Cryptos
Trump also promised to fire U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler upon assumption. This has fueled bullish sentiments as Americans vote for President Joe Biden’s successor. Meanwhile, the current Vice President and Democratic Party candidate is not very clear on her position on crypto. Harris did, however, pledged to safeguard the future of the crypto and AI industry.
Eric Balchunas, a Bloomberg ETF analyst, believes the election could likely influence the direction of Bitcoin’s price. Although the outcome of the election remain unclear as of this writing, many in the sector remain optimistic that Bitcoin will soar more after the election, as it has in the past.
Shiba Inu and Dogecoin Ride on Musk’s Support for Trump
Dogecoin (DOGE) and Shiba Inu (SHIB), the two leading memecoins, also recorded massive price jumps on Election Day.
DOGE increased by 12.82% to $0.1766, while SHIB increased by 8.21% to $0.0000182. DOGE and SHIB market volumes spiked by 57.71% and 77.91%, respectively.
In the build-up to Election Day, Tesla CEO Elon Musk gave Trump massive support and posted pro-Trump messages on X. Given Musk’s affinity for Dogecoin, DOGE shot up by approximately 15% after he attended a Trump rally.
Elon Musk and Donald Trump have become very friendly. The former president is contemplating creating a “Department of Government Efficiency,” abbreviated as D.O.G.E. Trump says this move will make government spending more efficient.
Could a Pro-Crypto President Sign Off on Crypto as a Legal Tender?
As Americans cast their ballots and await the declaration of the presidential election, the eventual winner will impact the industry.
Notably, stakeholders will look to see better regulatory clarity from the SEC. Under its Chair, Gary Gensler, this has remained elusive, resulting in numerous litigations across the industry. To date, the agency’s case against Ripple Labs and Binance is still lingering. A pro-crypto president might take executive action or lobby for favorable legislation.
Some analysts believe that if a pro-crypto President emerges, such a leader could likely allow crypto to flourish. The President would quickly assent to the Financial Innovation and Technology for the 21st Century Act. Although it might appear too early to call, a pro-cryptO U.S. president may favor using cryptocurrencies alongside fiat currency as obtained in El Salvador.
