Analysts predict that altcoins are expected to grow under Trump’s presidency
Alex Thorn, senior research analyst at Galaxy, believes that altcoins will benefit more from Donald Trump's election victory than Bitcoin, due to a potential shift in the regulatory environment. Thorn shared this view in a post on X while responding to comments regarding the weakness of the ETH/BTC ratio.
The ETH/BTC ratio describes the value of ETH relative to BTC and dropped to 0.0399 on September 15, marking its lowest level since April 2021.
With this decline, the ETH/BTC ratio has decreased by 53% since then, and further declines seem possible. However, some believe that Trump’s victory could strengthen ETH. Thorn appears to share a similar perspective.
He stated:
“I believe Trump’s victory is better for alts than for BTC, mainly because regulatory easing will benefit alts more than BTC.”
His view aligns with the general opinion of many who believe that Trump’s victory will increase the prices of crypto assets, as it would reduce regulatory pressure on the crypto industry. Although his focus on altcoins differs from many analysts, it may be because he thinks Bitcoin currently enjoys significant regulatory clarity as an asset.
Compared to Bitcoin, the status of most altcoins is uncertain, and the Securities and Exchange Commission (SEC) still classifies most of them as securities. Trump’s victory, followed by his promise to replace SEC Chair Gary Gensler, could provide greater regulatory clarity regarding altcoins and ultimately increase their value.
The struggles of altcoins may continue.
Thorn’s statements about the potential impact of Trump’s victory on altcoins are not surprising, considering their struggles in recent months. Major altcoins including Solana (SOL), Ethereum (ETH), Ripple (XRP), Dogecoin (DOGE), and Cardano (ADA) have underperformed compared to Bitcoin in 2024.
These struggles have been due to regulatory pressures, declining activity across several blockchain networks, and prevailing bearish sentiment in the market. However, analysts believe that if there is no rally, the situation could worsen.
Will Clemente, founder of Reflexity Research, believes that altcoins may attract less capital from institutional investors if there is no increase.
Benjamin Cowen, a crypto analyst, also shared a similar view, stating in his YouTube channel that altcoins will drop further this year and will succumb to Bitcoin due to low global net liquidity.
He said:
“What I said could be the bottom line: the capitulation of alt/bitcoin pairs before the end of the year. So I think there is a case where the alt/bitcoin pairs simply get rejected at 0.4, they might still hold a bit above that, but ultimately I think they get rejected and return to the lower range before the end of the year.”
However, Michael van de Poppe, CEO of MN Trading, believes that the lows for altcoins are currently low and expects the assets to trend upwards. Bitfinex analysts have also stated that altcoins are relatively strong against Bitcoin and have shown resilience that could make them attractive to investors.
In the event of Trump’s victory, Bitcoin will surpass $100,000.
Most institutional analysts are focused on the potential impact of Bitcoin, with varying predictions on how high the benchmark asset could rise depending on the outcome of the U.S. presidential election.
Standard Chartered has a bullish forecast for Bitcoin, predicting that it will reach its all-time high by the end of 2024, regardless of who wins the 2024 election.
Analysts at the bank predict that Bitcoin could rise to $125,000 if Trump wins, or $75,000 if Kamala Harris wins. They attribute the price difference to more relaxed regulations that would occur during Trump’s presidency. However, the bank expects regulatory progress for the crypto industry to happen regardless of who wins, although it may be slower under Harris.
Bernstein brokerage analysts are less optimistic about the impact of a Trump victory, stating that Bitcoin could reach $90,000 in 2024 if the former president wins. Regarding Harris, the analysts are pessimistic and note that Bitcoin could likely fall below $50,000, potentially dropping to $30,000 if she wins the election.
However, many believe that the potential impact of Trump’s victory on cryptocurrency prices may be exaggerated, as the former president has a history of breaking political promises. According to Poll Market data, Harris has a 50% chance of winning the election, 1% higher than Trump.
