The race seems to have finally ended. Joe Biden defeats incumbent President Donald Trump in the US presidential election. But is his victory good for that bitcoin (BTC) and cryptocurrency in general?
One of the positive consequences of the result is that it is creating some peace in the market again. The situation is no longer so uncertain and investors know where they stand again. It must of course be said that there is still a little bit of uncertainty. Trump has filed a number of lawsuits over possible electoral fraud, and many more will follow. Trump has still not been able to show evidence of electoral fraud, so it remains to be seen how this will turn out in the courtrooms.
That aside, with Biden as the winner, it has become more likely that a stimulus package will come. The US economy is suffering from the corona crisis and so a stimulus package should get the economy back on its feet. This one boost could be positive for the bitcoin price.
Equity markets can also respond positively to such a stimulus package, as we have already seen last year. What we also saw this year was that bitcoin rose along with the stock markets. If the Democrats and Republicans come up with a new stimulus package, this effect could continue for a while. In the longer term, things are a bit more complicated. For example, Biden’s tax and climate policy could lead to a slower rising or even falling stock market.
Biden is already busy setting up his team. For example, it was recently announced that he will appoint Gary Gensler as an advisor for Wall Street Oversight. Gensler is a known proponent of bitcoin and cryptocurrencies in general. This would also be good news for the crypto world!
BREAKING: Biden expected to hire bitcoin-friendly, Gary Gensler, to help oversee Wall Street pic.twitter.com/VtioTdAMh6
– Lolli ???? (@trylolli) November 7, 2020
How Biden himself thinks about Bitcoin or crypto is not known. It is also not known whether he will develop legislation for the new emerging sector, which is necessary according to companies like Ripple. More likely will become apparent as the start of his presidency approaches:
President-elect Biden has not said anything publicly about his views on crypto. For now it really isn’t big enough to get his attention. The next four years of US crypto policy will depend on who he appoints to key positions; we’ll know more as the transition progresses. ”
President-elect Biden hasn’t said anything publicly about his views on crypto. For now, it really isn’t a big enough issue to warrant his attention.
The next four years of US crypto policy depends on who he appoints to key positions; we’ll know more as the transition gets going.
— Jake Chervinsky (@jchervinsky) November 7, 2020
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