Bitcoin prices fell over 2% as traders reacted to the US presidential debate between Democratic nominee Kamala Harris and Republican candidate Donald Trump, who has become an outspoken supporter of cryptocurrency. As of 12:19 p.m. in Singapore, Bitcoin was trading at $56,330, marking a significant shift in market sentiment.
The cryptocurrency market often responds to political events, and this debate was no exception. Trump’s pro-crypto stance has made Bitcoin a popular “Trump trade,” with traders keeping a close eye on his statements about the digital-asset sector. Conversely, Kamala Harris has yet to fully outline her position on cryptocurrency, leaving room for speculation about the future of US crypto regulation under her potential leadership.
During the debate, Trump’s defense of the digital-asset industry and his ambition to turn the US into the “crypto capital of the planet” caught the attention of market analysts and traders. Harris, on the other hand, focused on broader economic and social issues, indirectly influencing the market. Betting markets tilted in favor of Harris after the debate, further contributing to Bitcoin’s price dip.
Caroline Mauron, co-founder of Orbit Markets, noted that “the market interpreted Harris as the early winner of the debate, which led to a slight decline in cryptocurrency values, particularly Bitcoin.” While Harris has not fully laid out her stance on cryptocurrency, an advisor from her campaign indicated support for industry growth, but with necessary safeguards.
The drop in Bitcoin prices following the Harris vs Trump debate reflects the sensitivity of the cryptocurrency market to political developments. With Donald Trump’s cryptocurrency stance evolving into a central theme of his campaign, traders are keen to see how a potential victory might reshape the regulatory environment in the US. In contrast, Kamala Harris’s crypto policy remains less defined, although recent comments from her advisors suggest she may back industry expansion with protective measures.
Trump’s Crypto Strategy:
Donald Trump, who once dismissed the cryptocurrency market as a “scam,” has since pivoted to embrace the sector. His campaign has sought donations from crypto supporters, and his recent ventures include the launch of multiple collections of nonfungible tokens (NFTs). His fourth NFT collection features images of Trump in various heroic roles, such as a motorcycle rider or boxer, earning millions in revenue.
In addition, Trump and his sons have promoted a new DeFi project, World Liberty Financial, signaling further investment in decentralized finance (DeFi). However, details about the project remain vague, and its legitimacy was briefly compromised by hackers, who issued a fake announcement about the initiative.
Cryptocurrency in the 2024 Election:
The cryptocurrency industry is playing a significant role in the 2024 US presidential election, contributing substantial donations to political campaigns and seeking favorable regulations. Under the Securities and Exchange Commission (SEC) Chair Gary Gensler, the SEC has maintained a cautious stance on digital assets, leading many in the crypto space to align with candidates who promise a friendlier regulatory approach.
Despite the current volatility, Bitcoin’s market performance has rebounded since hitting a record high of $73,798 in March 2023. While the rally has cooled, the gains have diminished the memory of the 2022 bear market and high-profile collapses like the FTX exchange, one of the biggest financial frauds in US history.