As the US presidential election draws to a close, the future of altcoins remains uncertain while Bitcoin remains strong. According to a recent report by Bloomberg News, traders are closely watching the altcoin market for potential impacts based on the election outcome.
While Bitcoin is holding steady at around $70,000, which is only 5% below its all-time high, altcoins like Dogecoin and Solana are experiencing increased volatility. Speculation is growing about potential shifts in US crypto policy, leading to uncertainty in the altcoin landscape.
One notable event that caused a surge in Dogecoin was when Elon Musk hinted at a hypothetical “Department of Government Efficiency” (D.O.G.E.) if former President Donald Trump were to win. This caused Dogecoin to spike by 18%, now trading at around 17 cents and doubling in value since the beginning of the year.
Despite the uncertainty surrounding altcoins, Zaheer Ebtikar, the founder of Split Capital, believes that Bitcoin will thrive regardless of the election outcome. However, Vice President Kamala Harris’ potential win could lead to increased regulatory scrutiny, making it challenging for altcoins to succeed.
Historically, altcoins tend to perform well during bull markets as investors flock to these smaller-cap assets after Bitcoin rallies. However, this year has been tough for altcoins, with most underperforming compared to Bitcoin. A Galaxy Research “policy scorecard” also highlighted the risks altcoins may face under a Harris administration.
Vetle Lunde, head of research at K33 Research, predicts that a Harris win could initially drive prices down but expects a short-lived dump. He also believes that broader macroeconomic factors and decreased election uncertainty could support a year-end rally for cryptocurrencies.
Options on Deribit, the largest crypto options exchange, show a split view among traders, with some hedging against regulatory challenges under a Harris administration while others are banking on a market boost if Trump wins.
In terms of market data, Bitcoin is currently ranked #1 by market cap with a price increase of 2.9% over the past 24 hours. The total crypto market is valued at $2.32 trillion with a 24-hour volume of $91.09 billion, and Bitcoin dominance stands at 59.47%.
Overall, while the future of altcoins may be uncertain after the US election, Bitcoin seems to remain strong and poised for potential upside regardless of the outcome. Investors will need to closely monitor the market developments and regulatory landscape to navigate through the post-election crypto environment.
