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Altcoins encounter an unpredictable path following US election results, while Bitcoin remains stable.
As the US presidential election nears its end, altcoins have emerged as a key interest for traders, who expect a considerable market effect depending on the results, as reported by Bloomberg News report.
The report indicated that while Bitcoin (BTC) remains stable at approximately $70,000 — about 5% below its peak value — altcoins such as Dogecoin (DOGE) and Solana (SOL) are experiencing heightened volatility as speculation intensifies regarding possible changes in US crypto regulations.
In a significant development, Dogecoin jumped 18% after Elon Musk suggested a theoretical “Department of Government Efficiency” (D.O.G.E.) should former President Donald Trump prevail. The token, currently trading at around 17 cents, has seen its value double since the beginning of the year.
Bitcoin secure, altcoins at risk
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Zaheer Ebtikar, the founder of Split Capital, remarked that Bitcoin is likely to prosper in this bullish cycle, irrespective of the election outcome. However, a victory for Vice President Kamala Harris could create an environment where altcoins face challenges due to increased regulatory oversight.
Traditionally, altcoins experience a surge during bullish markets, with investors frequently shifting towards these smaller-cap assets following Bitcoin’s rise. Nevertheless, the past year has proven difficult for altcoins, which have largely lagged behind Bitcoin, with a few exceptions among high-risk “memecoins” like Dogecoin.
A Galaxy Research “policy scorecard” assessing the positions of US presidential candidates also pointed out that a term under Harris might present a threat to altcoins. In contrast, Galaxy analysts predict an “explosive upside” for the overall market should Trump win.
Vetle Lunde, head of research at K33 Research, noted that a Harris victory will likely lead to an initial price decline, but this downturn may be brief. Lunde further mentioned that broader macroeconomic factors and reduced election uncertainty are expected to bolster a year-end rally.
Options on Deribit, the largest crypto options exchange, reveal a divided perspective among traders, with rising interest in protective puts and bullish calls. This indicates that while some are preparing for potential regulatory hurdles under a Harris administration, others are anticipating a market boost if Trump emerges victorious.
The post Altcoins face uncertain future amid US election outcome, Bitcoin unshaken appeared first on CryptoSlate.
