Could Altcoins Experience a 40 Decline Insights from Bitcoins Performance During the 2020 Election
As the U.S. elections draw near, the clarity of cryptocurrency regulations becomes a paramount concern for investors, especially in relation to Bitcoin and Ethereum. Should Kamala Harris emerge victorious, analysts forecast a market reaction akin to that witnessed in the 2020 elections.
Following the 2020 election on November 3, Bitcoin’s price experienced an upward trend for approximately 66 days as investors sought refuge in the cryptocurrency. Conversely, altcoins encountered a significant decline of about 40% in the subsequent two months. This trend indicates that a Harris victory could initially propel Bitcoin upwards, whereas altcoins might see a decrease before they gradually rebound.
Investors are poised to exhibit a similar behavior this time, gravitating towards Bitcoin as a safe haven. Nevertheless, after one or two months, as confidence in the broader crypto market is restored, altcoins could start to gain ground. This resurgence may be spurred by the continuous exodus of crypto developers from the United States since President Biden assumed office, which has bolstered markets in Asia.
Why a New Memecoin Surge Could Be Possible
Given the current regulatory environment, particularly the SEC’s stance on cryptocurrencies, there is a possibility for another meme coin rally. The analyst mentioned that unlike altcoins, which are likely to be scrutinized by regulators, meme coins could remain unscathed. This is attributed to their often lack of a centralized development team and their non-classification as securities, rendering them less susceptible to regulation.
Should Kamala Harris secure the election, the market might initially react with caution, scaling back on risk. However, as confidence is reinstated, there could be a spike in interest in Bitcoin and various meme coins. Intriguingly, while many meme coins might experience a rally, Dogecoin could face difficulties due to its connections with Elon Musk and the previous administration.
Tags
Altcoins
Bitcoin
Crypto news
Cryptocurrency