“Cryptocurrencies will continue to be a political force,” says Samir Kerbage.
It is still early to invest in digital assets.
The presidential elections of November 5 in the United States have left a series of valuable lessons for bitcoin (BTC) and cryptocurrency investors.
The election of leaders with favorable positions towards the digital assets sector, added to the global economic and social context, suggests that 2025 could become a key year for these digital assets.
A week after the election, the price of bitcoin reached new all-time highs, reflecting the optimism that the results have injected into the markets.
“This price movement reflects that the results were ideal for bitcoin and other crypto assets, with a ‘pro-crypto’ president and Congress taking the helm of the United States government in January,” said Samir Kerbage, director of Hashdex, a company Brazilian capital in a recent report.
Trump’s victory implies a potential favorable regulatory framework, which could include the creation of a strategic bitcoin reserve and the promotion of mining in the United States.
This possible approach boosts the price of bitcoin, and the market welcomes the news with enthusiasm, anticipating a favorable regulatory climate as a bullish catalyst for new investments.
From these results, Kerbage poses a question: what can investors learn from the elections? According to their analysis, there are three key lessons for investors in cryptoassets.
1. Cryptocurrencies will continue to impact politics
The support of “pro-crypto” leaders marks a turning point, as it represents the validation of cryptocurrencies as an established asset class.
The favorable stance of President-elect Trump and other newly elected politicians reinforces this idea.
Trump has supported the idea of the United States including bitcoin on its balance sheet and has proposed the Department of Government Efficiency (DOGE) to develop positive regulations for the industry, as reported by CriptoNoticias.
For Kerbage, this is a clear indicator that The influence of cryptocurrencies in the political sphere will extend in the long termsurpassing party lines. In fact, he assures that “cryptocurrencies will continue to be a political force,” says the businessman.
“There were already signs of bipartisan support for the industry this year, but with such a decisive victory for pro-bitcoin candidates, both Democrats and Republicans, the idea that Congress should try to stop the incubation of this technology in the United States has been undermined.” dissipated”.
Hashdex, cryptocurrency investment firm.
2. There is a “generational change” in politics
Although support for cryptocurrencies is currently more evident among Republicans, Kerbage considers that this trend could be temporary.
What is more important is the generational change: “young politicians are embracing cryptocurrencies, while older ones are skeptical.”
The most ardent critics of cryptocurrencies tend to be older lawmakers, such as Elizabeth Warren (75), Sherrod Brown (72), and Brad Sherman (70).
In contrast, senators Tim Sheehy (38), Rubén Gallego (44) and Bernie Moreno (57) They represent a more favorable and youthful vision towards crypto assets.
Kerbage estimates that this generational gap could become a more influential factor than the partisan line on the issue related to cryptocurrencies in the coming years, transforming the perspective of this industry in the American political sphere.
3. Investors still have time to enter the market
Although bitcoin recently surpassed $90,000, Kerbage suggests this market is still in its early stages of adoption.
He assures that many advisors and large institutional investors are still carrying out previous studies and considers that the political and regulatory context of next year could accelerate these efforts.
Kerbage highlights that, in previous periods, bitcoin has offered massive returns in post-election years, returning 916% after the 2016 election and 354% after the 2020 election, as seen in the chart below.
“This performance aligns well with post-halving behavior,” the report states. This event reduces the issuance of the currency by half every four years, which had its most recent edition in April 2024.
There are analysts, such as Rekt Capital, who assure that the Bitcoin reaccumulation stage of investors who already had the currency has endedwhich begins the parabolic phase of the price.
Macroeconomic factors, such as lower interest rates in the United States and economic stimulus in China, are increasing global liquidity, benefiting “risk” assets like bitcoin.
“These factors, along with continued institutional adoption and a dramatically improving regulatory outlook in the United States, are setting the cryptocurrency market up for a very strong 2025.”
Hashdex, cryptocurrency investment firm.
