Bloomberg: Biden’s election is good for Bitcoin but bad for DeFi

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Bloomberg’s latest encrypted communication believes that Joe Biden’s election as US President will enable Bitcoin (BTC) to gain wider mainstream adoption, including possible approval of exchange-traded funds (ETF). In addition, it also mentioned that President Donald Trump’s government “non-interfered” with regard to cryptocurrency policies:

“In our opinion, if Joe Biden is elected president, it should be conducive to the further increase in the price of Bitcoin. The new leadership may change the Trump administration’s non-intervention policy, which will harm the broader crypto market. The new leadership will push the first benchmark into the mainstream, thereby increasing the chances of ETF approval.”

Considering that the US Department of Justice released its 70-page “Cryptocurrency: Execution Framework” yesterday, this newsletter was probably written before then.

The author claims that the same power will hinder the development of DeFi. Both conclusions are based on the assumption that the Democratic Party will make it possible to make the regulation of the encryption field clearer. This year, the DeFi field has exploded in a completely unregulated environment. It is no coincidence that the hackers who attacked KuCoin have been laundering money through Uniswap, the largest decentralized trading platform.

Bloomberg asserted that regardless of the outcome of the election, “no matter who is elected president, the price of bitcoin will continue to rise, but the speed will slow.” Bloomberg also concluded that if the price of bitcoin continues to rise during the next presidential term It will grow at half the rate from 2016 to 2020, and it will reach $80,000 by 2024:

“In our opinion, the increasing trend of U.S. debt-to-GDP ratio, quantitative easing (QE), and Bitcoin computing power seems unstoppable. These indicate that cryptocurrency prices are more likely to continue to rise during the next presidential term. The price of Bitcoin has increased by 1400%, and about half of the increase will bring the price of Bitcoin to $80,000 in 2024.”

Yesterday, Square announced that it has purchased $50 million worth of Bitcoin, which means that Bitcoin is being adopted by more and more companies.