President Joe Biden’s decision not to run for re-election in 2024 had a big impact on the cryptocurrency market. Initially, Bitcoin prices dropped by 3% in response to the news but later recovered and even reached a multi-week high.
Experts from Bitfinex explained that this initial drop was just a quick reaction to the uncertainty caused by Biden’s announcement. By Monday morning, Bitcoin had actually gone up by 0.9% in the past 24 hours, reaching over $68,000 for the first time since June.
Now, people are waiting to see what Vice-President Kamala Harris’s approach to crypto will be, as she has secured the support of most Democratic delegates to become the party’s nominee for President.
Investors are being cautious as Harris takes the lead. Analysts at Bitfinex mentioned that the impact of Biden stepping down and Harris taking over could have various effects on the crypto market, possibly being seen as neutral to slightly negative in the short term due to uncertainty and potential policy changes.
Harris’s stance on crypto is not well-known, making it hard to predict how it will affect the market. Given her focus on consumer protection and financial regulation, it’s possible that she might continue the current administration’s cautious approach to regulating the crypto industry, which may not be great news for investors.
Experts believe that investors might want to wait and see what Harris’s policies will be before making any big moves. The uncertainty caused by a tough Democratic nomination battle could lead to market volatility, and the direction of the market will likely depend on the odds of a Democrat or Republican win.
On the other hand, there could be an opportunity for Harris to make a positive impact on the crypto industry. Billionaire investor Mark Cuban mentioned in a recent interview that Harris’s team had reached out to him with questions about crypto, which he saw as a good sign.
Cuban suggested that changing policies could show that Harris is open to new opportunities and willing to create a more welcoming environment for the industry. This could be especially important since her rival, Republican nominee Donald Trump, already seems to have an advantage in that area.
In conclusion, while there is some uncertainty surrounding Harris’s potential crypto policies, there is also a chance for her to make a positive impact on the industry by being open to new opportunities and creating a more welcoming environment for crypto businesses. Investors will have to wait and see how things unfold before making any major decisions.