- U.S. crypto shares fell after Kamala Harris gained an edge in the presidential debate, weakening Trump’s pro-crypto stance.
- Bitcoin and ether dropped 2% and 2.6%, with crypto-related stocks like Riot Platforms and Coinbase seeing declines amid rising uncertainty.
OUR TAKE
The U.S. crypto market dipped after Kamala Harris gained ground in the presidential race, leaving the future of crypto regulation uncertain. Experts predict a more cautious approach under Harris, contrasting Trump’s pro-crypto stance. Investors are closely watching the election, as it could dramatically impact the digital asset landscape.
–Jasmine Zhang, BTW reporter
What happened
U.S. cryptocurrency shares dropped on Wednesday following the presidential debate where Democratic candidate Kamala Harris put crypto-supporter Donald Trump on the defensive. Trump, who had previously courted the crypto industry with promises of friendlier regulation, saw his betting odds slip from 52% to 48%. Harris, however, has yet to clarify her stance on crypto.
The market shift, alongside an endorsement for Harris from pop star Taylor Swift, led to a less optimistic outlook for bitcoin, which fell 2%, while ether dropped 2.6%. Crypto-related stocks, including Riot Platforms and Marathon Digital, declined between 3.6% and 5.3%.
Analysts noted the debate did not directly address cryptocurrency, but market sentiment is leaning towards Harris, creating uncertainty around the future of crypto regulation. Trump had previously promised that, if elected, the U.S. government would hold bitcoin as a store of value.
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Why it’s important
The fallout in U.S. crypto shares after Kamala Harris’ strong debate showing underscores just how pivotal the 2024 election could be for the future of digital assets. Donald Trump’s vocal support for bitcoin had sparked optimism in the crypto space, but Harris’ rise has left investors wondering about what’s next.
According to Valentin Fournier, an analyst at BRN, “Market sentiment is shifting in favor of Harris, creating a less optimistic outlook for bitcoin compared to Trump’s projections.” With Harris’ unclear stance on crypto, the future of U.S. digital asset regulation is increasingly uncertain.
If Harris wins, we may see a more cautious, regulated approach to crypto, potentially tightening the reigns on an industry still viewed by many as volatile. On the other hand, a Trump victory could usher in a new era of regulatory leniency for the sector. As Aurelie Barthere of Nansen notes, “Uncertainty will hang over risk assets till November.” Crypto investors must brace for potential shifts.
