An analyst from one of the largest asset managers in crypto says any outcome from the November election will be bullish for Bitcoin (BTC).
In a new report for VanEck, Matthew Sigel, the firm’s head of digital assets research, says the US federal election will likely have a significant impact on the crypto space, but will be bullish on Bitcoin regardless of which party wins.
Sigel says both Kamala Harris and Donald Trump are bullish on Bitcoin, with only nuanced implications for digital assets.
Sigel adds that both candidates are likely to maintain – or increase – budget spending, which could lead to further quantitative easing (QE), which has historically been bullish for the asset class.
Should Kamala Harris win the November election, Sigel expects Bitcoin to outperform the broader crypto market.
“Suppose Kamala Harris were to retain Gary Gensler as SEC chairman or align closely with the Elizabeth Warren wing of the Democratic Party on funding policy, which seems increasingly likely. In that case, the digital asset industry is generally expected to face a stricter regulatory environment that would dampen institutional adoption of digital assets in the US, further limiting domestic entrepreneurial activity.
However, regarding Bitcoin alone, we would argue that a Kamala Harris presidency might even be better for Bitcoin than a second Trump term because, in our view, it would accelerate many of the structural problems that are driving Bitcoin adoption in the first and foremost encourage…
Should that happen, the unique regulatory clarity will likely make Bitcoin even more competitive than other digital assets.”
Conversely, Sigel says the company believes that another four years of Donald Trump is “generally bullish for the entire crypto ecosystem,” as the government will likely be more business-friendly, especially perhaps on crypto.
“Regardless of the election outcome, the trend of growing budget deficits and rising national debts is likely to continue. This signals a weakening of the US dollar, a macroeconomic environment in which Bitcoin has historically thrived.”
At the time of writing, Bitcoin is trading at $63,769, up 1.12% in the past day.
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