Bitcoin price drops amid debate between Kamala Harris and pro-crypto Donald Trump
Bitcoin experienced a decline in value following the US presidential debate involving Democratic nominee Kamala Harris and Republican contender Donald Trump, a prominent figure in the cryptocurrency sector. The largest digital asset saw a decrease of up to 1.5% before partially recovering to reach $56,895 by 9:49 p.m. on Tuesday in New York. Concurrently, US equity futures and a dollar index showed slight declines, while Treasury yields remained stable.
Bitcoin is part of a group of investments known as “Trump trades” due to the former president’s vocal support for the crypto industry. Consequently, Bitcoin’s performance is closely watched as an indicator of the debate’s impact on market dynamics. Vice President Harris has not yet articulated a clear stance on cryptocurrencies, but an advisor from her campaign indicated a willingness to foster industry growth while emphasizing the need for regulatory safeguards.
In contrast, Trump has shifted his focus towards engaging with the digital asset sector to garner support for his political endeavors, aiming to position the US as a global leader in cryptocurrencies. This marks a significant shift from his previous characterization of the industry as a “scam.” Trump has recently ventured into the realm of nonfungible tokens (NFTs), releasing a series of NFT collections that have generated substantial revenue. Additionally, Trump, along with his sons Eric and Don Jr., has been promoting World Liberty Financial, a forthcoming venture in the decentralized finance sector within the crypto space.
The cryptocurrency industry has emerged as a notable player in the presidential election through substantial contributions to political action committees. Crypto enterprises are advocating for more favorable regulatory frameworks, countering the critical approach adopted by the Securities & Exchange Commission under the leadership of Chair Gary Gensler. Bitcoin reached an all-time high of $73,798 in March, driven by the demand for specialized US exchange-traded funds. While the rally has moderated since then, the gains have mitigated the impact of previous market downturns, including the collapse of the FTX exchange, which was one of the largest financial frauds in US history.
