Recently, Joe Biden's withdrawal from the presidential race had a significant impact on the value of Bitcoin and other cryptos, highlighting how political events can influence digital financial markets.
Joe Biden's decision not to run for re-election has sparked a surge in Bitcoin's value, following a positive move on Wall Street.
This phenomenon can be explained by investors' perception that Biden's departure female database could thus bring a more favorable administration.
This is because, during his term, Biden adopted a cautious stance towards cryptocurrencies, emphasizing the need for regulation to prevent fraud and protect consumers.
Possible substitutes and their views on cryptocurrencies
With Biden out of the race, attention therefore turns to possible Democratic candidates, such as Kamala Harris, Gavin Newsom and JB Pritzker.
While Kamala Harris has yet to clearly express her stance on cryptocurrencies, Gavin Newsom, the current governor of California, is known to be supportive of blockchain technology and cryptocurrencies.
Illinois Governor JB Pritzker also has a positive track record when it comes to technological innovation, suggesting a possible opening for pro-cryptocurrency policies.
Cryptocurrencies: How Joe Biden's exit affects the market
Kamala Harris: An unknown quantity?
Kamala Harris, Vice President of the United States, has a history of supporting technological innovation and a close relationship with Silicon Valley.
However, her specific stance on cryptocurrencies is still unclear. Harris could adopt a more regulatory or supportive stance on the sector, depending on how she perceives the balance between innovation and financial security.
The Future of Cryptocurrencies Under New Leadership
The change in US political leadership could bring both opportunities and challenges to the cryptocurrency market.
A more open-minded administration could facilitate the adoption of new technologies, but there is also likely to be increased regulation to ensure market safety.