Bitcoin Experiences 1.5% Decline Amid Kamala Harris and Donald Trump Presidential Debate
Bitcoin, the leading cryptocurrency, experienced a decline of up to 1.5% before recovering slightly to trade at $56,895 as of 9:49 p.m. on Tuesday in New York. This downturn occurred alongside a slight dip in US equity futures and a stable performance in Treasuries.
The cryptocurrency has become a focal point in discussions surrounding the ongoing presidential race, particularly due to the contrasting views of Vice President Kamala Harris and former President Donald Trump on digital assets. Bitcoin is often categorized as a "Trump trade" due to Trump's previously vocal support for the crypto industry, making it a barometer for market sentiment during the debate.
Currently, Vice President Harris has not articulated a clear stance on cryptocurrency. However, an adviser from her campaign indicated last month that she would support initiatives aimed at fostering growth within the crypto sector while also considering regulatory safeguards.
In contrast, Donald Trump has actively sought to engage with the digital-asset community, aiming to secure donations and votes as he campaigns for the presidency. He has pledged to position the United States as the "crypto capital of the planet," a significant shift from his earlier characterization of cryptocurrencies as a "scam."
Recently, Trump launched his fourth series of non-fungible tokens (NFTs), which feature various images of him, including depictions of him riding a motorcycle and boxing. This venture has reportedly generated millions of dollars in revenue.
Additionally, Trump and his sons, Eric and Don Jr., have been promoting World Liberty Financial, a new initiative targeting the decentralized finance sector within the crypto space. However, details about this project remain limited, and last week, hackers briefly compromised some of the Trump family's social media accounts to disseminate a fake announcement regarding the initiative.
The digital-asset sector has increasingly influenced the presidential election landscape, contributing significant funds to political action committees. Crypto firms are advocating for more favorable regulations, countering the critical approach taken by the Securities and Exchange Commission under Chair Gary Gensler.
Bitcoin reached an all-time high of $73,798 in March, driven by a surge in demand for dedicated US exchange-traded funds. Although the market has cooled since then, the gains have helped to overshadow the memories of a severe bear market in 2022, which included the collapse of the FTX exchange, one of the largest financial frauds in US history.