Bitcoin's future may be closely linked to the outcome of the upcoming US presidential election, according to a research report by investment bank Jefferies.
Bitcoin's Future May Depend on US Election Results
The report suggests that recent shifts in political attitudes towards cryptocurrency, particularly by former President Donald Trump, could significantly impact Bitcoin's price in the near term.
The Bitcoin Nashville conference last week was attended by many prominent political figures, including Trump, underscoring the growing political interest in the cryptocurrency.
Jefferies analysts Jonathan Petersen and Joe Dickstein noted that Trump's nascent support for the crypto industry could impact Bitcoin's price depending on the outcome of the election.
In his speech at the conference, Trump made various promises aimed at supporting the cryptocurrency industry. He has pledged to maintain a strategic Bitcoin reserve, refrain from selling Bitcoin confiscated by the government, and appoint crypto-friendly regulators.
He also proposed creating a crypto industry presidential advisory council and positioning the US as the “crypto capital of the planet.”
The report also pointed to ongoing consolidation in the Bitcoin mining industry. Notable mergers and acquisitions include CleanSpark's acquisition of GRIID and Riot Platforms' public bid for Bitfarm, which was ultimately rejected.
Analysts suggest that access to power is becoming more valuable than the mining fleets themselves, indicating a potential shift in the industry's focus.
As the US elections approach, the intersection of politics and cryptocurrency could become increasingly influential in shaping the future of digital assets like Bitcoin.
*This is not investment advice.