Favorable election results won’t reverse macro pressures on Bitcoin, GSN CEO warns

Borrowing costs, dollar strength and broader investor appetite for risk remain more decisive factors, argues Global Settlement Network CEO. Bitcoin traded around $77,302 early Tuesday after recovering above $77,600, as US midterm elections put political developments in focus. Yet, the outcome of the vote is unlikely to be the main driver of crypto prices, as financial conditions and global liquidity will continue to influence investor appetite for risk, Ryan Kirkley, co-founder and CEO of Global Settlement Network (GSN), said in a Tuesday note. “I think people give elections far too much credit for what happens to Bitcoin. Political headlines can absolutely move the market, particularly when traders are betting on a friendlier regulatory environment, but you can’t ignore the fact that crypto is trading in a global liquidity market,” Kirkley said. “If borrowing costs remain high, the dollar strengthens or investors start pulling back from risk, a favorable election result isn’t going to magically reverse those pressures,” he explained. Kirkley said institutional adoption is increasingly supported by practical economic considerations, including cheaper cross-border payments, more eff...