In the 2024 US election, there is a potential turning point for the cryptocurrency market, moving from tight regulation and bans to support and innovation. The increasing electoral importance of Bitcoin and cryptocurrencies can be attributed to falling real wages due to inflation, challenges to the US dollar’s global dominance, growing interest among voters, and the current administration’s interest in cryptocurrency industry regulatory strategies.
The presidential candidates’ different stances on cryptocurrencies will shape future policy and market expectations. Prediction markets, especially Polymarket, are expected to play a significant role in elections. This article also discusses the impact of the election results on crypto companies, noting that if Trump wins, a clearer and looser regulatory environment will be introduced, boosting crypto startups, providing an IPO path for crypto companies, and accelerating the development of DeFi and BTCFi.
DeFi and BTCFi stand to benefit from a more relaxed regulatory environment, with developers encouraged to create innovative applications on Bitcoin’s programmability. An example is Bitcoin’s upgrade in 2025, which is expected to achieve OP_CAT. This upgrade will allow developers to create decentralized, transparent smart contracts directly on the Bitcoin mainnet.
The total market potential of BTCFi is expected to exceed ten times the current market capitalization of BTC. This election could lead to a turning point for the cryptocurrency market, with a potential shift towards more support and innovation for crypto projects. The US election will have significant implications for the future of cryptocurrencies, DeFi, and BTCFi.
