Bitcoin Declines, Yen Rises as Trump-Harris Debate Fails to Impress Market
Asian markets and U.S. stock futures faced a downturn as Bitcoin declined by more than 2% to $56,300, reflecting a risk-averse sentiment in financial markets post the presidential debate where Kamala Harris was seen to outshine Donald Trump.
Among major cryptocurrencies, Dogecoin led the losses, while tokens linked to Trump’s political finance suffered significant setbacks, in contrast to gains in Harris-themed tokens, indicating market sentiment aligning with the debate’s perceived outcome.
The broader market gauge, the CoinDesk 20 Index, dropped nearly 2.5% alongside Bitcoin’s decline. Meanwhile, Dogecoin (DOGE) experienced a 4% slide in the past 24 hours, as per CoinGecko data, while XRP, Solana’s SOL, Ethereum (ETH), and BNB Chain’s BNB remained relatively stable.
Bitcoin exchange-traded funds (ETFs) continued to attract inflows for the second consecutive day after a record losing streak, accumulating $117 million led by Fidelity’s FBTC product.
Earlier in the year, Trump had courted the crypto community, positioning Bitcoin and the wider crypto market as a bet on his presidency, closely monitored by traders on the betting platform Polymarket alongside Harris’ odds.
According to Polymarket traders, Harris emerged as the winner of the first presidential debate against Trump, who had previously debated Joe Biden before the latter withdrew from the race, passing the baton to Harris.
In traditional markets, S&P 500 futures dipped by 0.4%, while Chinese stocks hit a seven-month low as Trump defended trade tariffs during the debate, assuring they wouldn’t lead to higher prices for U.S. consumers.
The Japanese yen, a safe-haven asset, strengthened to 140.70 per U.S. dollar, reaching levels not seen since January, surpassing the early August peak of 141.68. The yen surged following the Bank of Japan’s interest rate hike, unwinding risk-on yen carry trades.
Trump-themed political finance tokens faced significant losses, with the MAGA (TRUMP) token down by 11.7%, Solana’s Doland Tremp (TREMP) token dropping 27%, and the MAGA Hat (MAGA) token falling by 23.5%.
Conversely, the Harris-themed ‘Kamala Horris’ (KAMA) token saw a 7.6% increase, while the entire PoliFi category market cap declined by 8.8% to slightly over $540 million.
Polymarket bettors are currently indicating a 56% chance of another debate occurring and a 27% likelihood of Trump firing his campaign manager. Following the debate, Trump made an appearance on Sean Hannity’s Fox News show, signaling a perceived weak performance in the debate.
