Bitcoin Price Decline Linked to Kamala Harris Surpassing Trump, Bernstein Suggests

Growing enthusiasm surrounding the Kamala Harris presidential bid might be influencing the recent drop in Bitcoin prices, as per analysts at Bernstein in a report released on Monday.

The odds of Harris winning the election have risen in recent polls and on the Polymarket crypto prediction platform following President Joe Biden’s withdrawal from the Democratic candidacy race in support of his vice president.

This development is viewed as bearish by analysts at the investment firm due to the broad approach Democrats have taken towards crypto and the lack of clarity on Harris’ stance on digital asset regulation.

Polymarket, a popular betting platform, operates on the Ethereum scaling network Polygon and has gained popularity this year amidst the U.S. election cycle, especially as the crypto industry has become a more prominent topic among politicians.

On the other hand, Republican presidential candidate Donald Trump has expressed pro-crypto views, making him a favored candidate in the crypto space. An election win by Harris in November could potentially negatively impact crypto prices, hinting at an uncertain future for digital assets in the U.S., as noted in the report authored by Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia.

The report suggests that the market sentiment currently favors a bullish outcome for Bitcoin prices in the event of a Trump win and a bearish outcome in the case of a Harris victory.

While Trump had previously criticized cryptocurrencies, labeling Bitcoin as a “scam,” his recent stance has shifted towards supporting the industry, including advocating for the mining of Bitcoin on U.S. soil.

Trump even participated in the Bitcoin 2024 conference last month in Nashville, where he reiterated his intention to replace the crypto-critical SEC Chair Gary Gensler if re-elected.

Although Harris has not extensively discussed the crypto space, entrepreneur Mark Cuban mentioned that her advisors had reached out with inquiries about the industry, suggesting a potentially more favorable stance towards crypto compared to the Biden administration.

The article was edited by Andrew Hayward.