As the U.S. presidential election draws near, fluctuations in the cryptocurrency market, particularly concerning Bitcoin (BTC) and Solana (SOL), are expected to intensify. Markus Thielen, the founder of 10x Research, has put forth strategies for traders, advising them to adopt long positions in Bitcoin and short positions in Solana to navigate this volatile environment effectively.
How Will Election Results Affect Cryptocurrency Regulation?
Thielen posits that the election outcomes could significantly impact the regulatory landscape for cryptocurrencies. He predicts that if Kamala Harris wins, the approval chances for exchange-traded funds (ETFs) linked to altcoins like Solana may diminish, potentially leading to a 15% decline in its value. Conversely, Bitcoin might see a more modest downturn of 9% under a Harris administration.
Can Declining Transaction Fees Affect Solana’s Value?
Yes, Thielen points out that the recent drop in daily transaction fees on the Solana network, which fell from $5 million to approximately $2.5 million, could exert downward pressure on SOL’s price. Historically, a decrease in transaction fees has correlated with a decline in value.
- Long positions in BTC and short positions in SOL are recommended.
- Kamala Harris’s win could hinder ETF approvals, affecting SOL negatively.
- Bitcoin is expected to experience lesser declines compared to Solana.
- Falling transaction fees on Solana could indicate potential price drops.
The decisions made in the upcoming election could set a vital precedent for cryptocurrency policy and market expectations, highlighting the interconnectedness of political outcomes and market trends.
