Bitcoin Falls as Harris and Pro-Crypto Trump Clash in Debate

(Bloomberg) — Bitcoin fell as investors reacted to the U.S. presidential debate between Democratic nominee Kamala Harris and Republican rival Donald Trump, who embraced the crypto sector.

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The digital asset fell as much as 2.6 percent before paring some of the decline to trade at $56,490 at 7:40 a.m. in London on Wednesday. In broader markets, U.S. stock futures, a gauge of the dollar and Treasury yields retreated, while the yen climbed.

The original cryptocurrency is one of the so-called Trump transactions due to the former president’s stated support of the digital asset industry. Bitcoin has thus been in the spotlight as something that could provide clues as to who has gained the upper hand in the debate.

Trump was often on the defensive in the discussion, while Vice President Harris made remarks that seemed designed to push the Republican nominee. Pop icon Taylor Swift announced her support for Harris minutes after the debate ended. The odds reflected by the betting markets have moved in favor of Harris following Tuesday night’s showdown in Philadelphia.

Evaluation of the debate

“The market rated Kamala Harris won the debate, especially in the early stages, which translated into a small move down for crypto,” said Caroline Mauron, co-founder of Orbit Markets, a liquidity provider for trading instruments derived from digital assets. .

Harris has yet to elaborate on a political stance on crypto. Last month, an aide to her campaign said Harris would support measures to help grow the industry. The advisor also signaled continued interest in implementing safeguards.

Trump has tried to court the digital asset sector in search of donations and votes amid a close race for the White House, even vowing to make the US the “crypto capital of the planet”. His position is reversed, given that the former president previously called the sector a “scam”.

Crypto projects

The Republican candidate recently released his fourth collection of non-fungible tokens. These NFTs, representing ownership of assets such as images depicting Trump riding a motorcycle or as a boxer, have earned millions of dollars.

Trump and his sons Eric and Don Jr. also promoted World Liberty Financial, a planned initiative in the niche decentralized finance sector of crypto. Details remain scarce, and hackers last week compromised several Trump family social media accounts to publish a fake post about the project.

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The digital asset industry has become an influential player in presidential elections through large donations to political action committees. Crypto companies are seeking friendlier regulation, rejecting the critical stance taken by the Securities & Exchange Commission under Chairman Gary Gensler.

Bitcoin jumped to a record high of $73,798 in March, fueled by demand for dedicated US exchange-traded funds. The rally cooled, but the gains still erased memories of a deep bear market in 2022 and a series of crashes, including the delisting of the FTX exchange – one of the biggest financial frauds in US history.

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