Altcoins expected to rally as US election approaches

With just over 20 days remaining until the US presidential election, analysts are forecasting a potential surge in altcoins if regulatory conditions ease following the election outcome. 

Industry experts suggest that altcoins could benefit significantly, especially if the election brings favorable changes to the crypto regulatory landscape.

According to Ki Young Ju, CEO of CryptoQuant, regulatory concerns have held back certain altcoins, including Uniswap (CRYPTO:UNI). 

For instance, Uniswap delayed the implementation of a fee switch mechanism that would have redistributed protocol fees to UNI token holders, fearing legal exposure. 

Ju believes that if regulatory barriers ease after the election, this fee switch could trigger a price increase for UNI.

Historical patterns also support the possibility of an altcoin rally post-election. 

Analysts have drawn parallels to Bitcoin’s (CRYPTO:BTC) 2020 cycle, where Bitcoin typically peaked, followed by a surge in altcoins. 

CRG’s analysis indicates that Bitcoin is nearing a price discovery phase, which may signal the start of an altcoin season soon after.

Michaël van de Poppe also predicts that the altcoin market capitalisation is primed for a breakout within the next two weeks, further reinforcing expectations of a rally after the election.

Political betting markets, like Polymarket, currently give former President Donald Trump a 54% chance of winning. 

Analysts suggest that Trump’s re-election could lead to regulatory changes that may favor the altcoin market. 

During Trump’s previous term, Bitcoin saw substantial growth, which could indicate a similarly favorable environment for cryptocurrencies if he wins again.