Biden’s exit and Harris’ rise could spell near-term caution for crypto investors

President Joe Biden’s withdrawal from the 2024 election race caused quite a stir in the crypto market. Bitcoin initially fell 3% in response to the news, but later recovered and even hit a multi-week high.

According to Bitfinex analysts, this was a knee-jerk reaction to temporary market uncertainty. As of Monday morning, Bitcoin had risen 0.9% over the past 24 hours, breaking above $68,000 for the first time since early June.

All eyes are now on what the crypto policies of Vice President Kamala Harris, who secured the support of a majority of Democratic delegates to become the party’s nominee for president, will entail.

Investors wary as Harris takes lead

According to a statement to CryptoPotato, Bitfinex analysts said the impact of the resignation of Biden and Harris at the top of the crypto market could be “multifaceted and is likely to be perceived as neutral to slightly negative in the short term due to of uncertainty and potential for policy changes.”

For one thing, Harris’ position on crypto is not well documented, making it difficult to predict the exact impact. However, his political focus on consumer protection and financial regulation could suggest continued scrutiny of the crypto industry.

The existing administration has been relatively conservative in its approach to regulating the crypto market despite the launch of spot ETFs for Bitcoin and Ethereum. If Harris continues with this cautious regulatory approach, it may not be favorable for the market.

As such, analysts believe investors could take a “wait and see” approach until Harris’ policies become clearer. While discussing the effect of a contentious nomination battle on the crypto market, Bitfinex analysts said:

“A contentious battle for the Democratic nomination could introduce significant uncertainty, which could lead to market volatility. However, it is difficult to comment on a clear market direction, as it would depend on how the market prices against the odds of beat a Democrat or a Republican.”

An opportunity for Harris?

In a recent conversation with Politico, Bitcoin advocate and billionaire investor Mark Cuban shared that Harris’ camp had reached out to him with questions about crypto. He revealed that he had received several inquiries from his team about the asset class, which he saw as a positive sign.

Cuban also stressed that changing the policies would send a clear message that she is in control and receptive to new opportunities. By being “literally open for business,” Harris would demonstrate her willingness to embrace the industry to create a friendlier environment, especially since her rival and Republican presidential candidate, Donald Trump, already appears to have an advantage in this department

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