This column was co-authored by Frank Chaparro, special projects director at The Block, and Laura Vidiella of MNNC Group.
Here are some relevant excerpts from the platform:
“Republicans will end the Democrats’ illegal and un-American crackdown on cryptocurrencies and oppose the creation of central bank digital currencies. We will defend mining rights. Bitcoin Bitcoin+1.73%
And ensure that every American has the right to self-custody of their digital assets and to trade them without government oversight or control.”
It’s a major turning point for the Biden administration, as SEC Chairman Gary Gensler has sought to limit Americans’ ability to self-custody and participate in decentralized finance. Gensler has also taken legal action against a number of players, including Uniswap, Coinbase, and Kraken, which industry participants have long viewed as the only good actors.
Bernstein explains:
“Republicans see cryptocurrencies as a meaningful source of funding, not just a vote bank. If the election swings more Republican, cryptocurrencies will eventually become a ‘Trump deal,’ and the hope for a favorable regulatory regime will change the ‘use case’ narrative surrounding blockchain.”
Readers may remember the original “Trump Trade” from 2016. Some of our “decadent” friends in the crypto markets even called it the “Donald Pump.”
Where is the DJ pump?
So where will the repercussions be, given Trump’s surge in the polls and his rise in the polymarket?
Bitcoin fell more than 6% following the debate, which many saw as the end of President Biden’s campaign.
The possibility of a Trump presidency is bullish for cryptocurrencies, but there is too much uncertainty for the crypto market, which is already the most dangerous market, to recover. First, it is uncertain whether President Biden will remain in office because he may have cognitive problems. What is more uncertain? There is also German Bitcoin.
Still, sentiment is really mixed right now. However, some believe that if Trump wins in November, the market will bounce back and enter a huge bullish cycle. The derivatives market reflects this temporary pessimism, and the inverted term structure shows that short-term options trade at higher implied volatility than long-term options, indicating overextended bearishness.
Disclaimer: The Block is an independent media outlet providing news, research and data. As of November 2023, Foresight Ventures is the largest investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information on the cryptocurrency industry. Below are the current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.