Altcoin

Bitwise CIO Predict Altcoins Will Benefit From A Donald Trump Win

Published

6 days ago

October 30, 2024

Bitwise Cio Predicts Altcoins Will Benefit From A Donald Trump Win.webp.webp

Bitwise Chief Investment Officer Matt Hougan commented on the potential impact of the upcoming U.S. presidential election on cryptocurrencies. He suggested that a Donald Trump victory may be more favorable for Ethereum and other altcoins than for Bitcoin. According to Hougan, altcoins stand to benefit from a Trump-led administration due to anticipated regulatory clarity. Hougan’s comments, shared just days before the November 5 election, indicate the market’s growing anticipation.

Bitwise CIO: Regulatory Clarity Under Donald Trump Could Spark Altcoin Rally

In a recent interview, Bitwise CIO Matt Hougan suggests that regulatory clarity under a Donald Trump administration could benefit Ethereum and other altcoins more than Bitcoin. Hougan explained that while Bitcoin is already well-regulated as a commodity under the SEC and CFTC, other cryptos face a less certain regulatory environment.

For Ethereum and similar assets, a Trump victory might reduce ambiguity, creating a more favorable landscape for development and investment. The current lack of clarity has left some altcoins like XRP exposed to varying levels of scrutiny.

For Bitwise CIO Hougan, the possibility of clearer guidelines and more stable frameworks under Trump could allow altcoins to thrive in ways they haven’t before. Altcoins typically involve a broader range of use cases, including decentralized finance (DeFi), cross-chain interoperability, and smart contracts that require tailored regulatory approaches.

Hougan believes a Trump administration may take a more hands-off approach, which could encourage innovation across the altcoin market. These sentiments are shared across the crypto space. Most recently, Founder and CEO of Consensys, Joseph Lubin, emphasized that the US SEC’s regulatory actions have led to “lost jobs and halted productive investments” in blockchain.

Moreover, Hougan emphasized that broader regulatory clarity would likely drive institutional adoption across the altcoin market. Large institutions often wait for explicit guidelines before entering emerging markets. According to Bitwise CIO Hougan, clearer regulations would help reduce market volatility and make it easier for institutions to manage risk. As a result, a Trump administration prioritizing crypto clarity might unlock capital flows into the altcoin space

Polymarket Betting Odds Favor Donald Trump

Recent data from Polymarket, an Ethereum-based prediction market, indicates growing confidence in a Republican win. CoinGape recently reported the former president’s winning odds reached an all-time high of 66.7%. Polymarket has seen a surge in betting activity during this election season, amassing over $3 billion in cumulative wagers. More so, analysts from Presto have noted that a Trump-led Republican sweep in the presidency, Senate, and House could improve the chances of passing crypto-friendly legislation.

However, Polymarket has come under scrutiny for alleged wash trading, which may have artificially inflated trading volumes and popularity metrics. Blockchain analysis firms Chaos Labs and Inca Digital reported that about one-third of Polymarket’s trading volume could be attributed to wash trading.

Meanwhile, Amid Bitwise CIO prediction, Elon Musk has announced an investigation into the Kamala Harris campaign’s alleged use of Discord to coordinate social media support. Reports suggest that campaign volunteers were instructed to manipulate social media algorithms.

In addition, according to a report by CoinGape, some prominent U.S. politicians remain opposed to cryptocurrencies. The report noted figures like Senator Elizabeth Warren, Sherrod Brown, and Congressman Brad Sherman actively supported anti-crypto legislation. Their stance could influence crypto-related legislation, depending on the outcome of the upcoming US election.