𝗖𝗿𝘆𝗽𝘁𝗼 𝗦𝗵𝗮𝗸𝗲𝘀 𝗮𝘀 𝗨𝗦 𝗣𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝘁𝗶𝗮𝗹 𝗗𝗲𝗯𝗮𝘁𝗲 𝗙𝘂𝗲𝗹𝘀 𝗠𝗮𝗿𝗸𝗲𝘁 𝗪𝗮𝘃𝗲𝘀

Bitcoin dips 2.6% post-presidential debate as Trump supports crypto, while Harris' performance sways market sentiment.

Bitcoin took a dip early Wednesday, with the digital currency sliding up to 2.6% as investors digested the heated US presidential debate between Democratic nominee Kamala Harris and Republican Donald Trump, a figure who has openly embraced the crypto community. By 6:30 a.m. in New York, Bitcoin was trading around $56,600, having recovered slightly from its initial drop.

In broader markets, the reaction was mixed - stocks moved without clear direction, the dollar pulled back, and Treasury yields slipped, while the yen showed some strength.

For the crypto world, Trump has become something of a wildcard. His vocal support for digital assets has put Bitcoin in the spotlight, as investors tuned into the debate hoping to catch any indication of which candidate held the upper hand.

The night was intense. Trump found himself frequently on the defensive as Harris, with sharp retorts, seemed intent on rattling the former president. Pop sensation Taylor Swift added to the political theater by endorsing Harris just minutes after the debate concluded. Betting odds shifted, tipping more favorably towards Harris after the verbal clash in Philadelphia.

“The market seemed to interpret an early advantage for Kamala Harris in the debate, and that contributed to a slight decline in crypto,” noted Caroline Mauron, co-founder of Orbit Markets, a key player in digital-asset derivatives.

Though Harris has yet to present a clear stance on cryptocurrency, her campaign has hinted at fostering growth in the industry while maintaining protective measures for consumers. Meanwhile, Trump has shifted his focus toward digital assets in an attempt to galvanize support in a tightly contested election. His campaign promises even include making the US the "crypto capital of the world" - a stark contrast to his earlier stance when he once derided the sector as a "scam."

In an attempt to ride the crypto wave, Trump recently launched his fourth series of nonfungible tokens (NFTs), cashing in millions from digital collectibles like images of him riding a motorcycle or posing as a boxer. Beyond NFTs, Trump and his sons have been linked to World Liberty Financial, a new project aimed at crypto's decentralized finance sector, though details are scarce.

Crypto's growing influence in the election cannot be denied. Large donations from industry players have poured into political action committees, as the sector seeks more accommodating regulations. This comes at a time when the Securities and Exchange Commission, led by Chair Gary Gensler, has taken a critical stance on cryptocurrencies.

Bitcoin soared to a record $73,798 earlier this year, driven by anticipation of US exchange-traded funds tailored to the crypto market. Though the rally has cooled, the rebound has erased much of the bitter memory of the 2022 bear market and high-profile collapses like FTX, one of the most significant financial disasters in recent history.

Crypto and politics are now firmly intertwined, with the debate proving just how closely market moves and political dynamics have become linked.