VanEck Forecasts Impact of Kamala Harris Presidency on Cryptocurrency Values

The cryptocurrency community is attentively observing how the forthcoming election will influence the industry.

While former President Donald Trump has proclaimed himself the “crypto president,” actively supporting the sector, Vice President Kamala Harris, the Democratic candidate, has adopted a more cautious approach since entering the race.

Matthew Sigel, VanEck’s Head of Digital Assets Research, along with Nathan Frankovitz, a digital asset investment analyst at the firm, indicated that both a Harris and a Trump administration could be favorable for Bitcoin, although the overall digital asset market may face varying consequences under their governance.

Harris Presidency Might be Better for Prices

VanEck presented a scenario where a Harris presidency could result in the continuation of SEC Chair Gary Gensler, recognized for his rigorous approach to cryptocurrency regulation.

This, combined with Harris aligning her financial policies with the more regulation-oriented faction of the Democratic party, represented by Senator Elizabeth Warren, could establish a challenging landscape for institutional adoption of digital assets.

Such a regulatory environment could hinder innovation and expansion within the sector, creating obstacles for the broader development of the crypto market.

Nevertheless, there is a positive aspect for Bitcoin supporters.

VanEck proposed that a Harris presidency might, paradoxically, be more advantageous for Bitcoin than a Trump administration.

The firm contended that the structural challenges potentially intensified under Harris, such as heightened fiscal spending and regulatory constraints, could lead more investors to Bitcoin as a safeguard against economic uncertainty and inflation.

This could boost Bitcoin’s attractiveness and competitiveness compared to other digital assets.

Conversely, VanEck’s assessment indicated that the crypto industry overall might gain more from a second Trump term.

A Trump presidency would likely usher in increased deregulation and business-friendly policies, which could particularly benefit crypto entrepreneurs.

Under such an administration, the firm believes the crypto ecosystem would face less regulatory oversight, fostering a more favorable environment for growth and innovation.

Bernstein Expects Bitcoin to Surge if Trump Wins

However, not everyone agrees with this perspective.

A report from Bernstein anticipates a rise in Bitcoin’s price, potentially reaching between $80,000 and $90,000, if Trump secures the election.

In contrast, they foresee a decline, with Bitcoin possibly testing the $30,000 to $40,000 range, should Harris win.

Despite differing views on the candidates, the overarching macroeconomic trend seems to support Bitcoin regardless of the election outcome.

VanEck observes that the U.S. is likely to continue on a trajectory of increasing fiscal deficits and escalating national debt, resulting in a weaker dollar.

Historically, such circumstances have been favorable for Bitcoin, which many investors regard as a store of value and a hedge against economic instability.

Meanwhile, investment bank Standard Chartered analyst Geoff Kendrick has stated that Bitcoin is projected to conclude the year at new all-time highs, irrespective of who wins the U.S. election.

Kendrick suggested that Bitcoin could achieve new all-time highs by the end of 2024 due to “positive drivers prevailing regardless of the election result.”

“I believe Bitcoin will finish the year higher, at new all-time highs, regardless of who wins the U.S. election, with a Trump victory pushing it to $125,000 and $75,000 if it’s Harris.”

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