Crypto enthusiasts have been deciphering the correlation between Joe Biden and Bitcoin to better grasp his administration’s impact on the cryptocurrency. Considering his minimal involvement with the crypto realm, there’s much less material to analyze. Yet, we must connect the dots to anticipate the possible effects of his monetary policies.
As the next U.S. President-elect, Joe Biden sets up his team in the next few days; crypto fans can look for clues. His picks for financial regulatory agencies and key policymakers can give insight into the upcoming crypto regulations. Although, it is far too early to guess probable picks. Thus, the correlation between Joe Biden and Bitcoin is still a murky topic.
As election dust settles, Joe Biden all set to rearrange U.S. administration
Authorities confirmed the victory of Joe Biden in the 2020 U.S. Presidential Elections on Saturday. The election itself was quite remarkable, considering it was undertaken during a pandemic. The former vice president never really referred to cryptocurrencies in any of his speeches. But he is known to be a proponent of the latest technologies and is known to advocate progressive technology-related policies. Supporters of Joe Biden believe his policies will be beneficial for the tech industry.
Joe Biden and Bitcoin’s correlation are opaque since the relation is not direct. The rather smooth finish to the U.S. Presidential election has disappointed many crypto traders hoping for an inconclusive ending. In such a scenario, Bitcoin would have rallied due to its safe-haven characteristics. Therefore, when the election results were announced without any geopolitical disruption, Bitcoin’s price fell sharply on Saturday. Bitcoin price quickly recovered to touch $15,350 on the back of bullish technical.
However, the election euphoria won’t last long. The United States still faces a raging COVID-19 with no clear plan in place. Also, the economy is still looking for another stimulus. The U.S. dollar is in the doldrums and looking for a direction. Therefore, the next U.S. President has an uphill task at hand when it comes to COVID-19, the economy, and stabilizing the U.S. dollar decline.
As of now, Biden’s victory has somewhat jolted the ‘anti-system’ crypto community who were expecting a muddy finish. Perhaps, here lies the first correlation between Joe Biden and Bitcoin. His swift victory reflects geopolitical stability, which weakens Bitcoin’s safe-haven credentials. The anticipated ‘chaos’ factor has now vanished into thin air.
Another stimulus will promote currency debasement theory
As the picture on Capitol Hill becomes clear, stimulus hopes are rising as well. The decision to further promote a loose monetary policy with perpetually low rates will only exaggerate currency debasement. The value of assets is bound to rise in the long term.
There’s no direct mention of cryptocurrencies in his entire stint as a senator. However, there’s a small connection between Joe Biden and Bitcoin, which is evident in a white paper by Satoshi Nakamoto detailing BTC‘s working principles. Around three decades ago, Joe Biden introduced bills that proposed to outlaw encryption, thereby inadvertently promoting the development of PGP keys. Apart from this tiny connection, there’s no thread to join Joe Biden and Bitcoin.
His picks for key administrative roles are not known yet. Federal Reserve Governor Lael Brainard is rumored to be Biden’s choice for U.S. Treasury Department. Fortunately, Brainard is presently associated with the digital dollar research project of Boston Fed. His rumored pick for Wall Street overseeing position is Gary Gensler, a blockchain enthusiast. These rumored names are enough to excite crypto fans.
So far, Biden’s presidency has shown no negative crypto signs yet. Still, it is too early to have a definitive correlation between Joe Biden and Bitcoin.