Politics and cryptocurrencies are inseparable, with significant political events influencing the crypto market. This is particularly the case with this year’s presidential election in the United States, as one of the presidential candidates, Donald Trump, expressed support for cryptocurrencies. The recent face-off between Kamala Harris and Donald Trump did not deviate from this norm. While both candidates skipped issues related to cryptocurrency, the debate immediately affected the market by pulling down the prices of Bitcoin, Ethereum, and Dogecoin. Throughout this race, and especially from this debate, one can experience the impact of political decision-making in the future of the crypto market.
Crypto Falls After Kamala’s Strong Debate Performance
Vice President Kamala Harris’s performance at the second presidential debate caused the price of various cryptocurrencies to fall. At the first presidential debate between Trump and Harris on September 10th, Kamala left a strong mark with her shocking performance and won the voters’ support.
Usually, cryptocurrencies are prone to volatility after political talks, election news, celebrity endorsements, and more. And this is what happened after the debate: Bitcoin fell more than 2% to $56,300, Ethereum was down by approximately 2.5% to $2,327, Dogecoin fell by about 4%, and other coins like Solana also fell during this period.
Trump Regains Lead Over Harris in Polymarket’s Election OddsPolymarket Showdown: Harris and Trump Face Off
Before the debate, Trump led Harris in Polymarket data, with traders strongly favoring his chances of winning the presidency. However, his odds dropped during the debate, falling by three percent, leaving both candidates with a 49% chance of winning. The reason behind the decline in the odds was because of Kamala Harris’s performance. It left Trump with no choice but to use false claims as a tiebreaker.
As a ripple effect of the debate, Trump-based Political Finance (PoliFi) tokens saw a price decline, with MAGA (TRUMP) experiencing a decline of 11.7%. Other tokens, like Solana’s Donald Tremp (TREMP) and MAGA Hat (MAGA), were down by 27% and 23.5%, bringing the entire PoliFi category market cap down by 8.8%. On the other hand, the Harris-themed token Kamala Horris (KAMA) rose by 7.6%.
Recovery of the Crypto Market
After the price dip following the presidential debate, crypto and shares of Bitcoin mining companies rebounded on September 12. The shares of Coinbase, which was at a low of $150, bounced back to $157, an increase of 5.3%. MicroStrategy also followed the suit by recovering 26% from $122 to $129.30. Bitcoin mining companies also increased their share price increase, with Marathon Digital, Riot Platforms, and Hut 8 recovering 0.94%, 2.07%, and 1.29%.
Cryptocurrencies also received from their dip, with Bitcoin rising 3% to $58,121 and Ethereum and Solana increasing by 1.52% and 3%. BNB also increased by 6.70% to $543.16, and Cardano was up by 5.68% to $0.3549.
Kamala Calls For Second Debate
After the first debate, Kalama Harris called for a second one, saying they owed it to the voters. In response to Harris’s call for a second debate, Trump said he would consider it if he got in the right mood.
I did great with the debates, and I think they’ve answered everything. But maybe if I got in the right mood, I don’t know.
Furthermore, when asked what he would need or want to participate in a second debate with Harris, Trump said he wouldn’t need anything and was ready for a debate the next day. However, he mentioned he had already participated in two debates. In a social post, he also said that when a prizefighter loses a fight, the first word that comes out of their mouth would be, ‘I want a rematch,’ quoting Harris for asking another debate.
Future of Crypto
During a recent campaign speech, Kamala Harris said, “Ours will be a very tight race to the very end, and we are the underdogs.” There is no doubt that this year’s election is going to be a hard fight to the last minute, and the winner of the presidential election can bring about huge changes to the crypto industry.
If Donald Trump, the often dubbed crypto president, wins the election, the market can anticipate a jump in the prices of cryptocurrencies, especially Bitcoin. Furthermore, according to Trump’s speech at this year’s Bitcoin Conference, a change in the chair of the SEC might happen.
When compared to Trump’s clear stance concerning cryptocurrencies, Kamala Harris’s stance on crypto is still unclear. Despite a statement from Brian Nelson, her senior campaign advisor, stating that Harris would support emerging technologies, there’s been no official statement from the presidential candidate.
Conclusion
The clash between Kamala Harris and Donald Trump in the first presidential debate has not only created public interest but also had a strong effect on the cryptocurrency market. Polymarket odds indicated a very tight contest, with both candidates having equal probabilities of winning at 49%. As a consequence of the debate, the price of tokens concerning Trump seemed to decrease, while the tokens named after Harris experienced a price rise. If Trump gets re-elected, the industry may be positively impacted based on his sentiment toward crypto. Similarly, for Harris’s position, there are no definitive answers as to how she will help or hinder the industry’s progress in the future.
