In addition to a possible approval of exchange-traded funds Bloomberg also touched on the policies of the president’s administration. Donald Trump Regarding cryptocurrencies as “hands-free”:
A possible presidency of Joe Biden should favor a further appreciation of the price of Bitcoin, in our opinion. The new leadership may change the Trump administration’s hands-off policy, to the detriment of the broader crypto market, and push the first-born benchmark into the mainstream, improving the chances of an ETF.
According to the report, the departure of current President Donald Trump would lead to more widespread adoption of the leading cryptocurrency and even a possible new approval policy for exchange-traded funds (ETFs).
Likewise, the potential administration of former Vice President Biden may change the “hands-off” approach to cryptocurrency regulation, typical of the mandate of tycoon Donald Trump.
Regardless, the Bloomberg report maintains that the price of BTC will continue to rise after November 3, regardless of who is elected president. What would change according to the new color of the White House would be the rhythm of that trend:
The seemingly unstoppable trends in the US debt-to-GDP ratio, quantitative easing (QE) and the rise in the hash rate of Bitcoin indicate that the price of cryptocurrencies is more likely to continue to advance during the next presidential administration , in our opinion. About half of the 1,400% gain from the 2016 vote would drive the price of Bitcoin to $ 80,000 by 2024.
Adverse effect on DeFi
The Bloomberg newsletter states that the same forces would hamper DeFi’s growth. Both conclusions are based on the assumption that a “democratic sweep” would potentially allow for greater regulatory clarity for the crypto space.
The DeFi space has exploded this year in a completely deregulated environment. It is not a coincidence that the perpetrators behind the KuCoin hack have been laundering their illicit profits through the largest decentralized exchange, Uniswap.