Bitcoin Price Falls as Harris and Pro-Crypto Trump Clash in Debate
Bitcoin experienced a decline in value following the US presidential debate between Democratic candidate Kamala Harris and Republican contender Donald Trump, who has shown support for the cryptocurrency industry. The digital asset saw a 2.6% drop before partially recovering to reach $56,490 at 7:40 a.m. in London on Wednesday. Concurrently, US equity futures, the dollar index, and Treasury yields retreated, while the yen strengthened.
Bitcoin, as the pioneer cryptocurrency, is considered a significant player in what are known as “Trump trades” due to the former president’s vocal backing of the digital asset sector. Consequently, Bitcoin’s performance was closely monitored as a potential indicator of the debate’s impact.
During the debate, Harris strategically challenged Trump, leading to perceptions that she held the upper hand. Pop star Taylor Swift promptly endorsed Harris after the event, and betting markets shifted in Harris’s favor post-debate. Caroline Mauron, co-founder of Orbit Markets, noted, “The market interpreted Kamala Harris’s debate win as a reason for a slight downturn in crypto.”
While Harris has not explicitly outlined her stance on cryptocurrency, an advisor from her campaign indicated support for industry growth with a focus on implementing protective measures. In contrast, Trump, in a surprising shift, has actively courted the digital asset sector for donations and votes, pledging to establish the US as the “crypto capital of the planet” despite previously criticizing the industry as a “scam.”
Trump’s recent ventures into the crypto space include the release of nonfungible tokens (NFTs) featuring imagery like Trump on a motorcycle or as a boxer, which have generated substantial revenue. Additionally, Trump and his sons have promoted World Liberty Financial, a decentralized finance initiative, although details remain limited, with recent social media hacking incidents causing temporary disruptions.
The cryptocurrency industry’s influence on the presidential race is evident through significant donations to political action committees. Seeking more favorable regulations, crypto businesses are challenging the Securities & Exchange Commission’s critical stance under Chair Gary Gensler. Bitcoin’s record high of $73,798 in March, driven by demand for US exchange-traded funds, marked a significant milestone despite subsequent market corrections.
The industry’s resilience has overshadowed past challenges, including the collapse of the FTX exchange, one of the largest financial frauds in US history. The ongoing evolution of cryptocurrencies and their impact on political and economic landscapes continue to shape global conversations and financial markets.
