Cash News
With a presidential election currently underway, cryptocurrency investors are thinking about who the eventual winner will be and their impact the overall industry. Perhaps a more accommodative White House can be a boon for digital assets.
Investors don’t need to search far and wide to find a place to park their capital. I predict that one top cryptocurrency is set to soar, thanks not only to potential changes to the regulatory landscape, but also for other reasons. Here’s a closer look.
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The crypto that’s up 63% already this year (as of Oct. 28), but that I believe will continue soaring, is none other than Bitcoin (CRYPTO: BTC). This is the world’s most valuable blockchain network, by far, with a market cap that exceeds $1.3 trillion today.
Bitcoin has had some catalysts that recently have worked in its favor and some that could help out in the near term. I mentioned the regulatory landscape earlier. Former President and Republican nominee Donald Trump was the keynote speaker at the Bitcoin Conference in Nashville, Tennessee, in July and said that if elected, he would establish a Bitcoin strategic reserve for the U.S.
This paves the way for the government of the world’s biggest economy to start pushing forward legislation that benefits Bitcoin, which could be a boon for the crypto’s price and adoption. Individuals and institutions will be less afraid to buy and hold it.
In April, Bitcoin underwent a halvingcutting its new supply growth rate in half. Historically, in the roughly 12- to 18-month period after a halving, Bitcoin’s price has experienced an impressive bull run that has driven its price to new highs. We’re six months into this cycle, so the next year could see big upside.
In January, the Securities and Exchange Commission finally approved Bitcoin spot exchange-traded funds (ETFs). These investment vehicles essentially legitimized Bitcoin on both Wall Street and Washington. They have made it incredibly easy for investors to gain exposure to Bitcoin’s price action without needing to figure out custody solutions.
Last month, the Federal Reserve cut its benchmark interest rate for the first time since the start of the COVID-19 pandemic, which struck in the first half of 2020. Lower rates help to boost consumer borrowing and spending and business investment. And for investors, they can spur more risk-seeking behavior to earn higher returns, which could push more capital to Bitcoin.