An analyst from one of the leading asset management firms in the cryptocurrency sector believes that the outcome of the upcoming November election will ultimately be favorable for Bitcoin (BTC).

In a recent report for VanEck, Matthew Sigel, head of digital asset research at the firm, suggests that the U.S. federal election is poised to significantly influence the cryptocurrency landscape, with positive implications for Bitcoin, regardless of the winning party.

Sigel asserts that both Kamala Harris and Donald Trump present bullish prospects for Bitcoin, albeit with subtle variations in their effects on digital assets. He notes that either candidate is likely to sustain or even increase fiscal spending, potentially leading to additional quantitative easing (QE), a scenario that has historically been beneficial for this asset class.

If Kamala Harris emerges victorious in the election, Sigel predicts that Bitcoin will outperform the broader crypto market. He explains, “If Kamala Harris retains Gary Gensler as SEC Chair or closely aligns with the Elizabeth Warren faction of the Democratic Party regarding financial policy, which appears increasingly probable, the digital assets sector is expected to face a stricter regulatory landscape. This could hinder institutional adoption of digital assets within the U.S. and limit domestic entrepreneurial endeavors.”

However, he posits that a Harris presidency might actually serve Bitcoin better than a second Trump term. Sigel argues that it could expedite various structural factors that facilitate Bitcoin’s adoption, stating, “In such a scenario, Bitcoin’s distinct regulatory clarity would likely enhance its competitiveness over other digital assets.”

On the other hand, Sigel believes that a second term for Donald Trump would be “generally bullish for the entire crypto ecosystem,” as his administration is expected to be more supportive of business, particularly within the crypto realm. He adds, “Regardless of the election result, the ongoing trend of increasing fiscal deficits and escalating national debt is likely to persist. This indicates a weakening U.S. dollar, creating a macroeconomic backdrop in which Bitcoin has historically flourished.”

As of the time of writing, Bitcoin is trading at $63,769, reflecting a 1.12% increase over the past day.

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Disclaimer: The views expressed in The Daily Hodl do not constitute investment advice. Investors should conduct their own research before engaging in any high-risk investments involving Bitcoin, cryptocurrency, or digital assets. Please be aware that all transactions and trades are undertaken at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets and is not an investment advisor. Additionally, The Daily Hodl participates in affiliate marketing.
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