Mr Biden will be inaugurated as President of the United States today, leaving business leaders to speculate on how his new agenda could affect the economy and business. Bitcoin traders are no different, but senior analyst at Investing.com Jesse Cohen believes Mr. Biden’s presidency could hurt the value of the cryptocurrency. He said earlier this month: “While many expect the Bitcoin rally to continue in 2021, I am more concerned about what the Biden administration could mean for cryptos. “Incoming Treasury Secretary Janet Yellen has in the past warned investors over Bitcoin during her tenure as Fed Chairman, calling it a highly speculative asset and not a fixed store of value.
“I expect Bitcoin to remain very volatile to the downside in the new year, given the potential for increased scrutiny and tighter regulation.
“That should see prices fall back from their all-time highs, with the hope of more regulation being the most important factor affecting Bitcoin in 2021.”
Even before Mr. Biden’s presidency, the value of Bitcoin has steadily increased and then declined, as was proven by the early weeks of 2020.
The cryptocurrency sold at £ 25,000 on January 5 before rising to £ 30,000 on January 7. But before this, it suffered its worst decline since March last year, losing about 20 percent of its value in just two days .
Some fear that President-elect Mr Biden will oversee the intensification of crypto regulation.
JP Theirot, chief executive of Bitcoin trading and cryptocurrency platform Uphold of California, told Forbes in November however that another member of Mr. Biden’s administration could be beneficial to Bitcoin.
Gary Gensler, who leads the monetary policy of the transfer teams, has been more positive about cryptocurrencies in the past.
Last year, Mr Gensler said Bitcoin technology was a “catalyst” for change, arguing “we are already living in an age of digital currencies”.
He added: “The potential for this technology to be a catalyst for change is real.
“I’m still fascinated by [Bitcoin’s] the potential of innovation to drive change – either directly or indirectly as a catalyst. “
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The British Financial Conduct Authority (FCA) warned investors of the risks that come with Bitcoin, adding: “If consumers invest, they should be prepared to lose all their money.
“Some investments that advertise high returns from crypto assets may not be subject to regulation beyond money laundering.
“Significant price volatility, along with the difficulties in pricing [Bitcoin] reliably, putting consumers at high risk of loss. ”
Express.co.uk does not provide financial advice. The journalists who worked on this article do not own Bitcoin.