TL;DR
- Donald Trump promises to support Bitcoin and crypto mining if elected, which could result in surging BTC prices (according to ChatGPT).
- Broader economic conditions, such as inflation and Federal Reserve policies, might also significantly influence the asset’s future valuation.
What Are BTC’s Chances?
The US presidential elections, scheduled for November this year, are supposed to witness a contested battle between current president Joe Biden and Republican candidate Donald Trump. The latter recently presented himself as the right choice for crypto enthusiasts, promising to let Bitcoin (BTC) and the industry thrive should he return to the White House.
Having that said, we decided to ask ChatGPT whether the price of the leading digital asset can reach the $100,000 milestone if Trump becomes America’s 47th president. The AI-powered chatbot estimated that his possible victory could indeed fuel a price rally for BTC:
“A Trump presidency might impact regulatory policies toward cryptocurrencies. If the administration adopts a more crypto-friendly stance, this could positively influence Bitcoin’s price.”
ChatGPT also claimed that BTC’s valuation could head north if Trump sticks to his promises related to the crypto sector. He recently pledged to increase the Bitcoin mining efforts of the United States, outlining the process as the “last line of defense against a CBDC.” Earlier this year, the billionaire said the digital dollar would be “very dangerous,” adding that he will never allow its creation (if he wins the elections).
Latest polls indicate that Donald Trump currently leads Biden by a slim margin: 41% versus 40% for his main opponent. Robert Kennedy, who collects 9.2% of voter support, is in third place.
Additional Factors
ChatGPT maintained that Trump’s possible election as the next president of the US is not the only element to fuel a BTC price rally. Broader economic conditions, such as inflation, geopolitical stability, and monetary policy, could also play a huge role.
Inflation in the States is one of the main things closely monitored by the Federal Reserve, which targets an annual rate of 2%. Once that percentage is reached (or even earlier), the central bank may pivot from its aggressive anti-inflationary regime and lower the interest rates.
The benchmark is currently positioned at 5.25%-5.50% and some industry participants expect the crypto market to head north once the Fed reduces the figure. After all, this will make money borrowing cheaper, potentially increasing the interest in risk-on assets such as BTC and the alternative coins.
Earlier this week, the US Bureau of Labor Statistics released its latest report, showing that inflation in America came lower than expected for May. However, the Fed decided to keep the rates unchanged: a move followed by a price decline for BTC.
