Research Summary
The report discusses the increasing relevance of Bitcoin and the crypto asset class in the context of the 2024 US Presidential election. It provides an overview of the candidates’ positions on crypto, highlighting the growing political significance of digital assets. The report also notes the recent rally in Bitcoin prices and the potential impact of global and national macro events on the crypto asset class.
Key Takeaways
Crypto’s Rising Political Relevance
- Political Significance of Crypto: The report highlights the growing political relevance of Bitcoin and the crypto asset class, especially in the context of the 2024 US Presidential election. For the first time, the crypto asset class was mentioned in an American presidential primary debate. A Harris Poll conducted on behalf of Grayscale found that half of young voters, who own crypto at a higher rate than equities, are considering candidate positions on crypto before casting their votes.
Candidates’ Positions on Crypto
- Varied Stances on Crypto: The report provides an overview of the positions of the four major party candidates and one independent candidate on crypto. President Biden has signed an executive order on the responsible development of digital assets and is favorable towards exploring a Central Bank Digital Currency (CBDC). Former President Trump, who once called Bitcoin a “scam,” has since released digital collectibles on the Bitcoin blockchain but has adopted a negative stance towards CBDCs. The other candidates have either not publicly shared their opinion on crypto or have expressed a nuanced understanding of the asset class.
Bitcoin’s Market Performance
- Bitcoin’s Rally: The report notes that Bitcoin is rallying towards its highest price in two years, just weeks before a pivotal Super Tuesday in March. Bitcoin has seen increased momentum and is up over 118% in the past year. The report suggests that Bitcoin could continue to have tailwinds, including potential Fed rate cuts and the anticipated Bitcoin halving in April.
Impact of Macro Events on Crypto
- Macro Events and Crypto: The report suggests that global and national macro events could have an impact on the political spotlight cast on Bitcoin and the crypto asset class as the November election approaches. It will be interesting to see if these events have any influence on the crypto market.
Future of Crypto in Politics
- Crypto in Future Elections: The report suggests that the crypto asset class could become a significant part of national political discourse in future elections. As the crypto market continues to grow and evolve, it is likely that candidates’ positions on crypto will become increasingly important to voters.
Actionable Insights
- Monitor the Crypto Market: Given the increasing relevance of the crypto asset class in politics and its potential impact on the market, it would be beneficial to keep a close eye on developments in the crypto market.
- Understand Candidates’ Positions on Crypto: As the crypto asset class becomes a significant part of national political discourse, understanding candidates’ positions on crypto could provide valuable insights into potential policy changes and their impact on the crypto market.
- Consider the Impact of Macro Events: The potential impact of global and national macro events on the crypto market should not be overlooked. These events could influence the political spotlight on Bitcoin and the crypto asset class, affecting market dynamics.
