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As the 2024 U.S. presidential election draws near, the crypto market is on edge, with Bitcoin and other major coins experiencing volatility. Meanwhile, prediction markets show a close race between Vice President Kamala Harris and former President Donald Trump, and many crypto analysts expect the election’s outcome to have a direct impact on digital asset prices.
Trump Win Could Trigger a Market Rally
Prominent crypto trader Emperor recently outlined what he believes could happen in the crypto market with the election results. He predicts that a Trump victory might initially cause a market pump, given Trump’s pro-crypto stance and his promises to clarify regulations for digital assets.
This could make the market feel more secure, especially for Bitcoin, which tends to react strongly to policy changes in the U.S.
Perhaps as per the recent data, Trump’s winning odds have slipped to 57.1% on Polymarket a prediction market, down from a strong 60%, while Harris has seen her chances climb to 42.9%.
Profit-Taking and Short-Term Dips
However, the Emperor also expects a wave of quick profit-taking by short-term holders if Trump wins. Many retail traders might sell off their assets soon after an initial rally, leading to a “sell-the-news” dip.
This reaction could mean a temporary price drop as event-driven traders exit the market. According to Emperor, this phase could be followed by a quiet period as retail interest declines and the market stabilizes.
Potential for a Long-Term Bull Run
After the initial dips and quiet phase, Emperor suggests that the crypto market may shift toward accumulation, where long-term investors begin to buy up assets at lower prices. If Trump follows through on his crypto-friendly policies, this could lead to a sustained bull run as the regulatory outlook becomes clearer.
Experts also support this view, noting that regulatory certainty could attract more institutional and retail investment in the coming years.
Big Bets On Trump’s Win
Meanwhile, a significant $38 million bet was recently placed on Trump’s victory, indicating strong belief in a potential win and its positive impact on crypto. A Trump win could strengthen the sentiment among pro-crypto investors and drive demand for digital assets.