- Harris-Trump debate led to immediate cryptocurrency market fluctuations, with Bitcoin down 2%.
- Polymarket odds showed a shift, with Trump and Harris now evenly matched at 49% each.
- Market recovery followed, with Bitcoin rebounding by 3% and mining companies seeing gains.
The intersection of politics and the cryptocurrency market was on full display following the recent debate between Vice President Kamala Harris and former President Donald Trump.
The event, which took place on September 10th, had immediate repercussions on the prices of major cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. Although neither candidate addressed cryptocurrency during the debate, the political dynamics played a significant role in influencing market reactions.
Kamala Harris’s strong showing in the debate appeared to have a negative impact on cryptocurrency prices. Bitcoin dropped over 2% to $56,300, while Ethereum saw a 2.5% decline, falling to $2,327.
Dogecoin, another popular cryptocurrency, experienced a 4% drop. The declines were not limited to these coins; Solana and other digital assets also registered losses, underscoring the volatility of the market in response to political events.
Before the debate, Donald Trump held a lead over Kamala Harris in Polymarket odds, with traders favoring his chances of winning the upcoming presidential election. However, Harris’s performance caused a noticeable shift, with Trump’s odds dropping by three percentage points, leaving both candidates with an equal 49% chance of victory.
The impact on political finance tokens was significant, with Trump-related tokens like MAGA and TREMP seeing declines of 11.7% and 27%, respectively. Conversely, Harris-themed tokens like KAMA rose by 7.6%, reflecting the market’s reaction to her debate performance.
Despite the initial downturn, the cryptocurrency market showed signs of recovery by September 12th. Bitcoin rebounded by 3% to $58,121, while other assets like Ethereum and Solana also regained lost ground. Shares of Bitcoin mining companies and platforms like Coinbase and MicroStrategy followed suit, posting gains after the initial dip.
As the U.S. presidential race heats up, the cryptocurrency market is likely to continue reacting to political developments. While Trump has been vocal in his support for cryptocurrencies, Harris’s stance remains less defined. The outcome of the election could have lasting implications for the industry, depending on the policies and regulatory changes that the winning candidate might implement.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
