After the Trump-Harris debate, Bitcoin plunges
11 September 2024 10:13
The rate of the cryptocurrency Bitcoin fell as traders reacted to the US presidential debate between Democratic candidate Kamala Harris and her Republican rival Donald Trump, who supports the cryptocurrency sector. This was reported by Bloomberg, according to "Komersant Ukrainian"
The largest digital asset fell by more than 2% to trade at $56,330 as of 12:19 p.m. Singapore time on Wednesday. In other markets, futures on US stocks, the dollar index and Treasury yields declined, while the yen rose.
The original cryptocurrency is one of the so-called “Trump trades” due to the former president’s stated support for the digital asset industry. As such, Bitcoin has 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 during the discussion, as Vice President Harris used phrases that seemed to be intended to hurt the Republican candidate. Odds reflected in the betting markets have shifted in favour of Harris after the face-to-face meeting on Tuesday night in Philadelphia.
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Debate assessment
“The market assessed that Kamala Harris won the debate, especially in the early stages, which led to a slight drop in cryptocurrencies,”
– said Caroline Moron, co-founder of Orbit Markets, a liquidity provider for trading digital asset derivatives.
Harris has not yet detailed her policy stance on cryptocurrencies. Last month, an adviser to her campaign said that Harris would support measures that would help the industry grow. The adviser also signaled a continued interest in implementing protective measures.
Trump has changed his stance to support the digital asset sector in his quest for donations and votes in the close race for the White House, even promising to make the US the “cryptocurrency capital of the planet”. This position is a sharp turnaround, given that the former president had previously referred to the sector as a “scam”.
Crypto projects
The Republican candidate recently released his fourth collection of non-fungible tokens (NFTs). These NFTs, representing ownership of assets such as images of Trump on a motorcycle or as a boxer, have earned millions of dollars.
Trump and his sons Eric and Don Jr. are also promoting World Liberty Financial, a planned project in the niche decentralised finance sector of the cryptocurrency industry. Details remain unknown, and last week, hackers briefly hacked into some of the Trump family’s social media accounts to publish a fake post about the project.
The digital asset industry has become an influential player in the presidential election thanks to large donations to political committees. Cryptocurrency companies are seeking friendlier regulation in the US, opposing the critical stance taken by the Securities and Exchange Commission under Gary Gensler.
In March, Bitcoin set a new all-time high, but in August, it was hit by the Great Cryptocurrency Crash.
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