Bitcoin Dips Following High-Stakes US Presidential Debate Between Harris and Trump

Bitcoin experienced a sharp decline as financial markets reacted to the intense US presidential debate between Democratic nominee Kamala Harris and Republican candidate Donald Trump, who has become a vocal supporter of the cryptocurrency sector.

Bitcoin dropped by more than 2%, trading at approximately $56,330. Broader markets also saw notable shifts, with US equity futures, the US dollar index, and Treasury yields pulling back, while the yen strengthened.

Trump’s recent backing of the crypto industry has made Bitcoin one of the assets closely watched in relation to his campaign strategies. As the debate unfolded, Bitcoin came under scrutiny as traders tried to gauge which candidate came out on top. Trump, who has embraced digital assets in his bid for votes, faced a challenging debate as Vice President Harris delivered pointed remarks aimed at rattling her opponent. Notably, pop star Taylor Swift publicly endorsed Harris moments after the debate concluded, further swaying public opinion and betting markets, which began favoring Harris after the event in Philadelphia.

"The market perceived Kamala Harris as the winner, particularly during the early stages of the debate, which translated into a slight dip in Bitcoin’s value," commented Caroline Mauron, co-founder of Orbit Markets, a firm specializing in digital-asset derivatives trading.

Harris has yet to outline a clear policy on cryptocurrencies, although one of her advisers indicated last month that she would support policies to foster the growth of the industry while maintaining regulatory safeguards. Meanwhile, Trump, who previously criticized cryptocurrencies as fraudulent, has reversed his stance, now positioning himself as a champion of the sector. He has even promised to make the United States the "crypto capital of the world" in an effort to secure both donations and votes in what is shaping up to be a tight race for the White House.

This shifting political landscape has left traders and market analysts keenly watching how each candidate’s stance on crypto could influence market movements in the run-up to the election.