3 Ways Biden's Win Could Be A Plus For The Crypto Market
A few hours ago, Joe Biden, the Democrat candidate in the just concluded US presidential elections, was announced President-elect having surpassed the crucial 270 electoral college votes that are needed to takeover the top job in the Whitehouse. In the build up to Biden's emergence, and in the anticipation of his possible victory at the polls, the entire cryptocurrency market had witnessed a greeny ocean, with bitcoin reaching a new peak that was last seen in January 2018.
Express.co.ukOne begins to wonder, quite puzzlingly, why the crypto market was rallying in sheer anticipation of Biden's victory. This is no coincidence. In short, experts believe that a Biden's Presidency is more favourable to the crypto market than the already well-known Trump Presidency which has developed an anti-bitcoin reputation following Trump's no-fan-of-bitcoin statement. Why are experts generally optimistic about Biden's Presidency? This article attempts to shed light on those seemingly enigmatic assumptions. Here are 3 ways Biden's Presidency could be a plus for the crypto market.
1. Biden Has Larger Stimulus Package Than Trump
The world is presently caught in the web of a pandemic that has had very dangerous consequences on the global economy. And this is why stimulus packages are important in the cushioning of the effect of the pandemic on the general populace. It is no longer news that President Trump handed stimulus packages to Americans during the lockdown in April.
And it is important to mention that Trump was planning on releasing the second batch of stimulus before the bad news of his defeat broke. While nobody knows whether Trump's stimulus plan would see the light of the day, the good news is that Biden has a larger stimulus package up his sleeves. Since the release of the previous stimulus packages has positively correlated with the crypto and stock market, it makes sense to expect that Biden's emergence is a plus for the crypto market.
2. Weaker Dollar
Coming on board as a President to fight off a ranging pandemic, Biden will be inheriting a weak dollar that partly resulted from Trump's minting of about 2 trillion dollars as stimulus packages. Since Biden plans to Father Christmas larger stimulus packages than Trump, he might end up printing more trillions in dollars.
If that happens, we might inevitably see a feeble dollar that will not only ignite the fires of inflation but positively increase the flow of money into the crypto market as many more people strive to hedge against inflation. This has the potential of pushing cryptos to new all-time highs.
3. Biden, The Tax Master
One of the major reasons why a controversial character such as Donald Trump won the ticket of the Republic party in 2016 was because wealthy Americans within the party wanted their business interests to be protected, an aspiration to which Trump delivered by especially lowering taxes for large corporations.
Joe Biden is an antithesis of Trump, at least to the extent to which the latter was described above. Biden has promised that he will be raising the taxes of Americans who earn more than $400k per annum. Larger corporations would have to pay more taxes, Biden argues, so that the state can have more resources to cater for the poor and vulnerables.
How then does that affect the crypto market? The answer is simple. Large corporations and wealthy Americans might want to exploit weak crypto regulations to reduce their tax liabilities. And you do not have to be told that that will bring in some new money for the crypto market.
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