Crypto Could Decide 2024 Elections: Here’s Why

Grayscale-funded survey shows Crypto has become increasingly relevant for American voters.

Robot sitting on the White House with a crypto document approved.
Created by Kornelija Poderskytė from DailyCoin
  • Grayscale’s latest survey reveals that Americans are keenly watching the crypto industry as inflation adds to their concerns. 
  • The survey emphasizes the rising significance of crypto in the eyes of policymakers and candidates alike. 
  • While Grayscale’s findings offer valuable insights, they also differ from larger crypto industry surveys. 

The US crypto industry has also barely had a moment to catch its breath amidst its multi-year battle with the current administration. Ambiguous yet strict regulations and a relentless regulatory crackdown have driven countless companies to seek friendlier shores, costing the US economy trillions in potential revenue.

However, the industry has also experienced remarkable growth over the years, from being dismissed as a ‘useless’ fad to being hailed as the asset class of the decade by some of the country’s largest institutions. This shift has convinced even the staunchest critics of its potential.

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As the industry continues its exponential growth and increasing influence, crypto policies are emerging as a decisive issue for American voters, especially with elections around the corner. Grayscale’s latest survey, “Is 2024 the Bitcoin Election?” reveals that eagle-eyed Americans are keenly watching the crypto industry and considering it a key electoral issue, particularly as inflation adds to their concerns.

US Voters Paying More Attention to Crypto Because of Inflation

Grayscale’s survey revealed that the crypto industry, particularly Bitcoin, has become increasingly relevant for US voters. 41% of the participants reported paying more attention to Bitcoin due to escalating geopolitical tensions, political discourse, and the US’ persistent inflation. 

Of all the concerns, inflation topped the list, with 38% of respondents citing it as their primary issue. The survey also highlighted that almost a third of participants were gauging the value of digital assets like Bitcoin to hedge against the rampant inflation that has worsened over the past two years. Nearly half of the survey respondents indicated they were more likely to add crypto to their portfolios.

FOMC Vigilantly Monitoring Inflation

While the Federal Open Market Committee (FOMC) claims it is vigilantly analyzing data in search of positive indicators to justify rate adjustments, inflation stubbornly hovers at 3.4% as of April. This hinders progress towards the Fed’s target of 2% inflation, a goal it hopes to achieve only after 2026, according to its projections.

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Beyond inflation, positive developments in the crypto space throughout 2024 are also swaying American voters, highlighting the increasing importance of crypto policies in the upcoming elections. 

Crypto’s Banner Year Woos Americans

Grayscale has dubbed 2024 ‘the banner year’ for Bitcoin, highlighted by its new all-time high, surging institutional interest, and a higher price point than in previous election years. At press time, Bitcoin hovered above $68,000. The closing price for Bitcoin during the last election was around $14,000. 

Grayscale survey finding infographic.
Grayscale survey finding.

Given this massive growth, the survey revealed that more than a third of participants are eager to learn about crypto investing or already invested in the asset class.

Positive Sentiment Evident in Retail Investors

The positive sentiment surrounding Bitcoin aligns with retail investors becoming increasingly confident recently, as evidenced during April when the market crash pushed BTC out of its bull run to $60,000 after peaking at $73,000. While such a crash would have stirred panic among smaller retail investors a year ago, it is quite the contrary this year. 

According to Glassnode, small account holders significantly increased their holdings following the April crash. Accounts holding between 0.001 and 10 BTC cohort accumulated around 7,000 BTC worth $420 million, accelerating from April 24 onwards. 

This newfound confidence and resilience in the crypto market hasn’t gone unnoticed by politicians and Presidential candidates. 

US Lawmakers and Politicians Lean Pro-Crypto

May has been a rollercoaster month for the crypto industry, especially regarding crypto policies. Earlier in the month, the market had braced for a potential rejection of the ETH ETF proposals and a further crackdown following threats from the CFTC.

Instead, the crypto industry bagged major wins this month, including the approval of the ETH ETF, the overturning of SAB 121, and the House approving the FIT21 act. This month, Donald Trump also emerged as ‘the pro-crypto candidate,’ with the former president vowing to stop “Joe Biden’s crusade to crush crypto.”

“It seems clear that crypto will increasingly be considered by policymakers and candidates across all offices that are preparing to run for office in the 2024 election,” Grayscale noted. 

While based on current developments Republicans appear more inclined towards crypto, Grayscale’s survey revealed an interesting split. 

Crypto is a Bipartisan Issue

Grayscale’s survey revealed that respondents believe crypto is a bipartisan issue. Voters were split on which party was more pro-crypto, considering that an equal percentage of voters (30% each) thought the Democratic and Republican parties had the most favorable position on crypto policies. This highlights that support for crypto isn’t overwhelmingly biased toward one party and suggests balanced interest across the political spectrum. 

The bipartisan support was evident in the recent FIT21 House vote, in which 71 Democrats joined 208 Republicans to back the crypto bill. 

While respondents agreed crypto was a bipartisan political issue, one thing they weren’t split on was having a candidate with an “informed perspective on crypto,” with 77% of participants voicing their support.

While Grayscale’s survey provides valuable insights, its status as a veteran in the crypto industry could cloud its findings. 

Grayscale Survey’s Divergence

Grayscale is the world’s largest asset manager, reigning supreme even in the Bitcoin ETF space with $19 billion in assets under management (AUM). This is impressive, considering the firm has endured months of consistent outflows that saw its AUM drop from $28 billion. Despite this downturn, Grayscale reigns supreme. 

The crypto firm surveyed 1,768 voting adults. However, the survey’s methodology raises questions about the distribution of sentiments—how many were neutral, pro-crypto, or anti-crypto remains uncertain. 

Additionally, the findings diverge from those of larger research centers like the Pew Research Center, whose March survey of 10,701 respondents revealed that two-thirds of Americans lacked confidence in the safety and reliability of cryptocurrency.

The sentiment surrounding crypto has likely changed since Pew Research conducted its survey. However, by May 2, when Grayscale conducted its survey, fear and uncertainty surrounding Bitcoin and the broader crypto market were high, especially following the market’s crash.  

On the Flipside

Why This Matters

Crypto policies will be a key deciding factor in the 2024 elections, especially as the asset class gains favor among politicians, voters, and institutions.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.