Post-Election Crypto Review for Advisors

This week, Paul Veradittakit from Pantera Capital analyzes the post-election bitcoin price surge and regulatory optimism. Eric Tomaszewski from Verde Capital Management discusses the implications for advisors in our 'Ask an Expert' section. We appreciate the support of our sponsors, L1 Advisors. -Sarah Morton. You're reading Crypto for Advisors, CoinDesk's weekly newsletter that explores digital assets for financial advisors. Subscribe to receive it every Thursday. Following the election, optimism prevails, potentially paving the way for broader adoption. Polymarket, a predictions market built on the Polygon blockchain, experienced a significant surge in usage before the election, with over $3.2 billion in bets, far exceeding pre-election volumes. Although open interest has declined post-election, there's a belief that mainstream users have tried and enjoyed Polymarket, preferring its decentralized and fee-free structure. The mainstream media, including The Economist, The Wall Street Journal, and Forbes, have cited Polymarket for its accuracy in predicting election outcomes. Hopefully, Polymarket's success will inspire more crypto apps to prioritize usability and marketing. Bitcoin has reached an all-time high of over $87,000, with altcoins also experiencing a surge. The election outcome may lead to a more productive government, potentially resulting in more crypto-friendly legislation. According to StandWithCrypto, more pro-crypto representatives have been elected, which could lead to increased lobbying efforts and clearer regulation. This, in turn, could supercharge the domestic crypto market, enabling companies to operate more freely in the US. Top DeFi protocols like Compound and Uniswap are excited about the potential for regulatory clarity, which could drive innovation. Overall, the crypto industry is heading in a positive direction, with a unified House and Senate potentially bringing unexpected benefits. -Paul Veradittakit, managing partner, Pantera. In our 'Ask an Expert' section, Eric Tomaszewski discusses how blockchain-based prediction markets could increase participation in elections, particularly among younger, tech-savvy individuals. He also explores the implications of the election for crypto and blockchain tech, including the potential for pro-crypto legislation and shifts in regulatory oversight. Finally, Tomaszewski explains how prediction markets can provide valuable insights for financial advisors, enhancing information efficiency and supporting decision-making for clients. -Eric Tomaszewski, financial advisor, Verde Capital Management