While some in the community keep questioning the outcome of the US presidential election, the mainstream media and the Associated Press have finally declared the race for former vice president and current president-elect Joe Biden.
But with uncertainty out of the way, traders and analysts are now trying to determine what a Biden administration will mean for cryptocurrencies – and they seem to have come to a loose consensus that a president who says nothing about crypto is preferable to a president who is active. belittles it.
Qiao Wang, the leader at the decentralized financing accelerator DeFi Alliance, applauded Trump’s loss and noted that the president had tweeted negatively about Bitcoin and Libra in the past:
The fact that Trump and Mnuchin are hostile to BTC makes a Trump a much inferior candidate. Point. However, the senate section is debatable. You could argue that Democrats are more likely to create inflation, which is good for BTC.
– Qiao Wang (@QwQiao) November 8, 2020
Meanwhile, investor Mike Novogratz agreed that a democratic government would be good for crypto, saying an ongoing stimulus program would bolster Bitcoin’s anti-inflationary narrative:
– Mike Novogratz (@novogratz) November 4, 2020
At the macro level, Cointelegraph has previously reported that an incoming Biden administration is possible markets strengthen when uncertainty decreases and hopes for additional stimulus packages are high, but similarly, these efforts could paralyze cryptocurrencies via a stronger dollar.
There is also widespread speculation about the crypto leanings of key appointees in the upcoming government. Composite General Counsel Jake Chervinsky noted that whoever nominates President-elect Biden for posts will be more important than the incoming president’s personal opinion:
President-elect Biden has not said anything publicly about his views on crypto. For now it really isn’t big enough to get his attention.
The next four years of US crypto policy will depend on who he appoints to key positions; we’ll know more as the transition progresses.
– Jake Chervinsky (@jchervinsky) November 7, 2020
To that end, Politico first reported that Gary Gensler, former CFTC chairman and Obama-appointed Gary Gensler, best known for his tough enforcement of Wall Street rules in the aftermath of the 2008 financial crisis, would be part of Biden’s transition team. Gensler has spoken positively about Bitcoin in the past.
Major outlets also reported two weeks ago that economist Lael Brainard, the former Federal Reserve governor who MIT collaborative effort to investigate CBDCs, is at the forefront of the Minister of Finance.
Despite all the guesswork, the opening of the US stock market on Monday will eventually paint a clearer picture for speculators. A popular Twitter trader said:
monday is coming
– starbust (@inversebrah) November 8, 2020