- Industry experts discuss the state of crypto post-election.
- The total crypto market capitalization has increased by 1.5% in the past day.
‘Uptober’ has delivered on its promise, now it’s time for ‘Moonvember.’ With only eight days to go, Bitcoin [BTC] and the broader cryptocurrency market has seen huge gains, boosted by post-election momentum.
Following Donald Trump’s victory in the US elections, Bitcoin reached an ATH of over $76,000. Meanwhile, other top cryptocurrencies mirrored its bullish trajectory.
But how did the The Republican Party’s victory in the US elections bring about this increase, and what lies ahead?
America’s path to innovation
Matthew Sigel, Head of Digital Assets Research at VanEck, recently shared his insights with Nate Geraci episode from CryptoPrimePod.
He pointed to the Republican Party’s victory as a potential pivot toward a more crypto-friendly regulatory landscape. Sigel noted:
“It’s sad for America to lose a little bit of our lead in innovation, so I think that’s going to change.”
The director criticized the SEC’s unfairness in penalizing individuals under unclear rules, and called for an end to proactive litigation and a focus on credible fraud investigations. He also cited Gary Gensler’s inability to adhere to the traditional regulatory process as a major problem.
Sigel called for reforms to modernize financial regulations. These include updating outdated transaction thresholds to reflect inflation and reducing the scope of regulation.
Reasons behind reducing regulations
Sigel noted that the Democratic administration’s March 2022 executive order pushed federal agencies to prioritize enforcement over innovation. This led to intensive control.
The rapid capital formation within crypto, where a meme can become money, thus posed a challenge to maintaining economic control and micromanagement, the director explained.
Furthermore, Sigel emphasized that crypto disrupts the status quo and challenges traditional financial intermediaries and the dominance of fiat money, stating:
“Bitcoin may be the biggest threat to the dollar.”
A new era of crypto after the elections?
Meanwhile, Haseeb Qureshi, Managing Partner at Dragonfly, highlighted the broad implications of the election results. In one interview with Scott Melker he said:
“The doors have swung open and they will remain open to crypto for the foreseeable future.”
The executive predicted that Republican support would likely fuel a pro-crypto movement in the US
Qureshi also pointed to a significant shift in political alignment, underscoring renewed bipartisan support for digital assets.
Despite the optimism, he emphasized that the extent and pace of regulatory change remain uncertain as agency leadership and key legislative deliverables are still pending.
The retail industry is poised to unleash the altcoin wave
Qureshi also predicted an impending revival of retail. While institutional investments have primarily driven Bitcoin’s success, he foresees a retail-driven altcoin rally on the horizon.
Despite a small increase in retail participation in March, the executive noted, a full retail-driven liquidity cycle has yet to unfold. He expects that if retail investors reengage, it could spark an explosive rally in altcoins.
As November unfolds, the crypto market is watching closely to see if Moonvember will bring unprecedented growth and cement a new era of trust.