Trump vs Harris: 2024 Election's Impact on Bitcoin Prices

Trump vs Harris: How Bitcoin May Fare Under New President

As the 2024 US presidential election approaches, the rivalry between Donald Trump and Kamala Harris is influencing economic discussions, particularly around the dollar and cryptocurrencies. Recent developments have shown a direct connection between political campaigns and the strength of the dollar, with Trump associated with a strong dollar, while Harris is viewed as having a more bearish outlook on the US currency. This race also holds significance for the future of cryptocurrencies like Bitcoin.

Trump's Influence on the Dollar and Crypto

Donald Trump's economic policies, notably tax cuts and protectionist measures, have historically strengthened the dollar. His stance on tax reductions for businesses and wealthy individuals is known to stimulate economic activity, which can lead to inflation and higher interest rates. In turn, this pushes the dollar upward. Trump's promotion of tariffs on Chinese goods also plays a role, weakening foreign currencies and giving the dollar a relative boost.

In the crypto space, Trump has been more vocal than Harris. Despite once calling Bitcoin a "scam," his recent launch of a cryptocurrency platform, "World Liberty Financial" and his increased presence in crypto discussions suggest a shift in his stance. Although it's unclear whether Trump would implement a truly pro-crypto policy if re-elected, his media presence keeps him in the spotlight of crypto enthusiasts.

Kamala Harris and Her Approach to Crypto and the Dollar

Kamala Harris, in contrast, is associated with a more moderate fiscal policy. If she wins the presidency, experts expect her to implement a more controlled approach with higher taxation on businesses and wealthier households. This would support the Federal Reserve’s efforts for a soft economic landing and may lead to weaker economic growth, which could have a bearish effect on the dollar.

Harris, however, has expressed interest in innovative technologies like artificial intelligence and digital assets. At a campaign event, she emphasized the importance of promoting innovation while protecting consumers, hinting at a balanced approach toward cryptocurrencies. Yet, with the SEC's tough stance on crypto under Biden’s leadership, Harris has to navigate a challenging regulatory landscape.