Market sentiment suggests that a Donald Trump win in the US elections in November could have a positive impact on cryptocurrency markets, while a Kamala Harris win could have the opposite effect, according to a research report published today by Wall Street brokerage firm Bernstein.
Bernstein highlighted that Bitcoin’s value has fallen following changes in Polymarket rates and polls in favor of Harris. The company expects Bitcoin, the world’s largest cryptocurrency, to “remain in a stable range until a clearer election signal emerges.”
Polymarket, a prediction market platform, allows users to speculate on the outcomes of future events, including political elections. Republican supporters have called the current market reactions the “first honeymoon phase,” arguing that Polymarket rates are open to manipulation, according to the report.
The report also noted that Trump’s camp has been particularly vocal about cryptocurrency policies, engaging with companies in the sector, Bitcoin miners, and the general crypto community. “The Republican camp led by Trump has made a strong pitch to crypto voters, promising favorable policies for Bitcoin and crypto innovation, even offering a potential national Bitcoin reserve,” analysts led by Gautam Chhugani wrote.
Speaking at the Bitcoin Conference in Nashville last month, former President Trump pledged to maintain a strategic national Bitcoin reserve and said that if he were re-elected, he would never sell the Bitcoin that the government had seized.
*This is not investment advice.