Bitcoin drops as investors react to Trump-Harris debate

Bitcoin saw a decline as investors responded to the US presidential debate between Democratic nominee Kamala Harris and Republican rival Donald Trump, who has shown support for the crypto sector.

The digital asset fell by as much as 2.6% before recovering slightly to trade at $56,600 as of 6:30 a.m. Wednesday in New York, News.Az reports citing foreign media.

In wider markets, stocks traded mixed, a dollar gauge and Treasury yields retreated, while the yen climbed.

The original cryptocurrency is one of a number of so-called Trump trades because of the former president’s avowed support of the digital-asset industry. Bitcoin was thus in the spotlight as something that might provide clues on who gained the upper hand in the debate.

Trump was often on the defensive in the discussion as Vice President Harris peppered in lines that appeared designed to needle the Republican nominee. Pop icon Taylor Swift announced her endorsement of Harris minutes after the debate wrapped up. The odds reflected by betting markets moved in Harris’s favor in the wake of the face off on Tuesday night in Philadelphia.

The Republican nominee recently put out his fourth collection of nonfungible tokens. These NFTs, representing ownership of assets like images depicting Trump riding a motorcycle or as a boxer, have earned millions of dollars.

Trump and his sons Eric and Don Jr. have also been promoting World Liberty Financial, a planned initiative in crypto’s niche decentralized finance sector. Details remain scarce, and hackers last week briefly compromised some Trump family social media accounts to issue a fake post about the project.

The digital-asset industry has become an influential player in the presidential election through big donations to political action committees. Crypto businesses are seeking friendlier regulations, pushing back against the critical stance adopted by the Securities & Exchange Commission under Chair Gary Gensler.

Bitcoin jumped to a record $73,798 in March, fueled by demand for dedicated US exchange-traded funds. The rally cooled but the gains have nonetheless dulled memories of a deep bear market in 2022 and a string of collapses, including the wipeout of the FTX exchange — one of the biggest financial frauds in US history.

News.Az