June 7, 2023

How Joe Biden's victory will affect bitcoin. 3 opinions

Not only cryptocurrency quotes depend on the policy of the new US president, but also the status of digital money in this country. The experts told why the end of the elections has not yet affected the BTC rate and when the main changes will begin.

On the evening of November 7, the winner was determinedUS Presidential Election - Joe Biden won 273 electoral votes, while 270 votes are enough to win. Over the past two days, Biden has been congratulated on his victory by leaders of various states, including German Chancellor Angela Merkel and French President Emmanuel Macron.

The United States is the world's largest economy andpresidential elections have an impact on global financial markets, including cryptocurrency. But since the current head of state, Donald Trump, did not recognize the results of the vote, in the near future he may start a trial, which will help to maintain uncertainty in the markets.

Quantitative easing and Bitcoin

Biden's Leadership Can't Impact Bitcoin -this factor has already been won back by the market, Valery Petrov, vice president of the Russian Association of Cryptocurrencies and Blockchain (RACIB), is sure. In the future, the impact of Biden's rise to power will depend on how much he adjusts US fiscal policy.

During the Trump administration, a largeemission of US dollars, including due to the pandemic. Part of this money went to financial markets and supported, among other things, the bitcoin rate. If Biden continues the policy of quantitative easing (QE), then there will be no negative impact on the first cryptocurrency, Petrov is sure. Otherwise, the value of the main digital coin could be under pressure.

Biden is a bitcoin supporter

Until Biden's victory affected the bitcoin price,agreed the director of development of the EXMO exchange Maria Stankevich. Unlike Trump, who repeatedly spoke negatively about the first cryptocurrency, Biden's opinion on this is unknown. He spoke publicly about Bitcoin once - in connection with the Twitter hack. The politician said he does not own bitcoins.

“We are confident that the course that Biden will take asregarding the dollar, so cryptocurrencies will become decisive in the market, since the influence of the United States and the US Securities and Exchange Commission (SEC) is still serious, "Stankevich emphasized.

According to her, if Biden turns out to be a supporterbitcoin, we will see an increase in its role as a defensive asset. To combat the economic fallout from the pandemic crisis, the US will "undoubtedly" resort to stimulus measures and the dollar's depreciation will continue. Against this backdrop, Bitcoin, with its deflationary model, will become an alternative for saving savings, even for households, not to mention institutional-level players.

One of the largest sponsors of the pre-electionSam Bankman-Fried, CEO of FTX exchange and Alameda fund, became the CEO of the winner of the presidential race, without whom it is difficult to imagine the news background this year, added Stankevich. This may indicate that Biden's attitude towards cryptocurrencies will be positive.

The hidden factor

Expectations for the best from Biden's statementNikita Zuborev, a senior analyst at Bestchange.ru, shares his position as US President. The projected Biden administration will be largely loyal to cryptocurrencies, with some advisers even extremely positive towards the crypto industry. In the medium term, this is a “very positive” moment.

“Biden has repeatedly announced his plans to increasetax for wealthy Americans, because of which some large investors may decide to go into the gray zone, perhaps part of the capital will be transferred to cryptocurrencies, to exchanges outside the American jurisdiction, ”Zuborev said.

The arrival of a new president bears much lessrisks to the market than the confiscated $ 1 billion in bitcoin from the Silk Road cracker, the expert added. When the US Department of Justice sells the bitcoins received from Individual X, a serious depreciation could occur.

Although the declared volume will reduce the costinsignificantly, this may be enough to provoke a chain reaction for "knocking out stop losses", "margin calls" and a sharp change in the strategy of trading robots. Together, this can bring down the bitcoin rate - this fact should not be underestimated, Zuborev warned.