Jefferies: The Impact of the Presidential Election on Bitcoin and the State of Mining
Date: 2024-08-01 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Jefferies Group has published a new report analyzing the current state of Bitcoin and the state of the mining sector. One of the key findings of the study is the fact that the Bitcoin price is directly correlated with the results of the US presidential election. According to the report, the outcome of the election can significantly affect the price of the cryptocurrency in the short term.
The Role of Political Factors in Bitcoin Dynamics
The report emphasizes that the victory of Donald Trump, one of the candidates for the post of President of the United States, can be a significant catalyst for the growth of the Bitcoin price. Although Trump has only recently begun to actively discuss crypto assets, his position is causing optimism among analysts. The main factors contributing to this opinion include:
- Change of regulatory bodies: There is a high probability that the composition of regulatory bodies will be changed to one more favorable to the cryptocurrency sphere.
- National Strategic Reserve: Trump announced his intention to create a strategic reserve of bitcoins, which will be stored in a government wallet.
- Status of the "crypto capital": The promise to make the United States a "crypto capital" and the creation of an advisory council on the crypto industry.
Trump voiced these ideas at the Bitcoin 2024 conference, which was held from July 25 to 27. Similar proposals were made by Robert Kennedy Jr., another presidential candidate.
Kirill Khomyakov, regional head of crypto exchange Binance in CEE, Central Asia and Africa, noted:
"While the implementation of a strategic reserve of bitcoins in the United States will require significant legislative and technical changes, it is important that leading political figures are openly stating their intentions. This indicates recognition of the value of bitcoin and may lead to greater regulatory clarity."
The state of the mining sector after the fourth halving
In its report, Jefferies Group also considered the state of the mining industry after the fourth halving. Experts noted that miners’ revenues were less affected than expected. Key metrics such as hash rate, price per hash, and mining difficulty showed a decline.
However, the industry is beginning to enter a consolidation phase. The report includes examples of acquisitions, such as Riot Platforms’ recent purchase of its competitor Block Mining.
According to analysts at Jefferies Group, more such deals are expected in the near future, as well as an increase in demand for reliable power supply channels, not just for mining equipment. This opinion is supported by a report from CryptoQuant, which indicates that large miners continue to increase their stockpiles, while smaller players are forced to liquidate them.
Thus, the current state and prospects of the cryptocurrency market, as well as the mining sector, are significantly influenced by political factors and changes in the industry.
