The long-awaited U.S. presidential election is close by, and experts are predicting the effect of this event on the cryptocurrency, especially Ethereum.
One of the primary reasons for a significant price change in ETH is the potential of regulatory changes depending on who wins. If a pro-crypto candidate wins, ETH might surge as the crypto market could get more favorable rules. However, if a candidate with less support is elected, tougher regulations would be introduced, which would hurt the price.
According to Nick Forster, the founder of Derive, Ethereum may experience a price swing in the period of the election. He explained that Ether’s price volatility is expected to increase between Oct. 25 and Nov. 5.
According to data from Derive, traders see a 68% chance that the cryptocurrency could rise or fall by 14% to 16% around Nov. 8, just a few days after the election. The data also suggests a 95% chance of a wider move, between a 26% drop and a 35% surge.
Currently, Ether’s expected future price swings, or forward volatility, stand at 76.6%, which is higher than Bitcoin’s 69.8%. Forster also pointed out that traders see Bitcoin to be more stable because it’s established as a store of value and is less affected by regulatory issues compared to Ethereum.
At the time of writing, Ether is trading at $2,329, which is almost 5% lower than the previous day with a 17% dip in trading volume. Despite the launch of the Ether ETF in July , which many thought would boost its price, Ether has not seen much of an increase.
ETH/USD Price Chart | CoinMarketCap
According to a recent article by Coinbase , the majority of voters are young voters, especially Gen Z and Millennials, who are showing their interest in supporting crypto-friendly candidates. Their decision could shape the future of the crypto market. As of now, the result is uncertainty.
