Popular crypto analyst Nicholas Merten thinks Bitcoin (BTC) isn’t likely to be impacted by the US presidential election, though he says the equities market could implode.
On a new episode of DataDash, Merten notes that Bitcoin saw the same type of price action on election night as it had in the previous days and weeks.
“This plays into our theory that we’ve proposed – that Bitcoin isn’t really going to be affected either way.
No candidate really offers that much of a dramatic benefit or negative for cryptocurrencies as an asset class.”
The US equities market, however, could be a different story. The election results in several states are likely to be contested by President Donald Trump, and the stock market doesn’t like the uncertainty of a contested election, notes Merten.
It’s also looking increasingly likely that Congress will be divided once again, leaving the US at the mercy of potential legislative gridlock.
Merten notes that the US equities market, still recovering from the devastating financial impact of the global pandemic, wants to see stimulus legislation. A split Congress means that legislation is a lot less likely to pass.
The analyst says the twin combination of a contested election and future legislative gridlock could equal a “disaster scenario” for equities in the United States.
On the flip side, some crypto analysts think the election is likely to be bullish for Bitcoin – regardless of who wins.
Ryan Watkins, the senior research analyst at the crypto analytics firm Messari, says data indicates presidential elections are the leading cause of Bitcoin bull runs.
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