- The future of cryptocurrencies uncertain for investors as upcoming US elections are primed to impact market performance.
- Ethereum (ETH) records a mild decline in price, as investors brace themselves for potential volatility.
- DeFi proponents reveal that the industry could face regulatory scrutiny in the long-term.
The upcoming U.S. Presidential elections are expected to influence the cryptocurrency market, with Bitcoin and Ethereum likely to see price volatility.
Bitcoin has recently surged following the approval of multiple Bitcoin-based Exchange Traded Funds (ETFs), but election outcomes could shift its performance. Meanwhile, Ethereum’s price has faced a decline, as traders brace for potential changes in DeFi regulations under the next administration.
Bitcoin has been riding a wave of institutional interest, driven by the recent approval of several Bitcoin ETFs. However, the upcoming elections may introduce regulatory changes that could affect this growth, especially if a candidate unfavorable to cryptocurrencies is elected. For Ethereum, uncertainties around DeFi regulations are already impacting investor sentiment, with its price dropping by 4% amid growing market concerns.
With previous regulations affecting the asset’s demand and use cases in the country, a win for a pro-cryptocurrency candidate can be considered a win for Bitcoin and the broader cryptocurrency market.
Charles Hoskinson’s Take on Trump and Bitcoin
At the TOKEN2049 conference in Singapore, Charles Hoskinson, co-founder of Cardano, shared his views on the potential impact of the election. He believes former President Donald Trump is more favorable toward cryptocurrencies like Bitcoin compared to his opponent, Kamala Harris. Despite this, Hoskinson emphasized that the adoption of digital assets will continue regardless of the election outcome.
The election’s outcome is expected to influence Ethereum’s price performance as well. Investors are already preparing for market shifts, and on Thursday, Ethereum experienced a 4% price drop as bearish sentiment spread. Regulatory clarity, especially concerning DeFi protocols, remains uncertain, adding to the pressure on Ethereum.
Read also: XRP, Solana ETFs: US Elections Fuel Speculative ‘Trump Call’
It bears mentioning that Ethereum (ETH) largely benefits from the multiple DeFi protocols launched on the network’s blockchain. As such, unfavorable regulatory policies could affect Ether’s price in the long term.
Additionally, the founder of DeFi Options platform, Nick Forster, stated that the DeFi ecosystem could face regulatory scrutiny depending on the election results. He further explained that the current market volatility reflects traders’ expectations for increased uncertainty.
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