Bitcoin slipped as traders reacted to the US presidential debate between Democratic nominee Kamala Harris and Republican rival Donald Trump, who has embraced the crypto sector.
The largest digital asset fell as much as 1.5% before paring some of the drop to trade at $56,895 as of 9:49 p.m. on Tuesday in New York. Elsewhere in markets, US equity futures and a dollar gauge edged down, while Treasuries were steady.
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 an asset that might provide real-time clues on who is gaining the upper hand in the debate.
Vice President Harris has yet to detail a policy position on crypto. Last month, an adviser to her campaign said Harris will back measures to help grow the industry. The adviser also signaled ongoing interest in implementing safeguards.
Trump has pivoted to courting the digital-asset sector in search of donations and votes amid a tight race for the White House, even vowing to make the US the “crypto capital of the planet.” His stance is an about-face given that the former president previously dubbed the sector a “scam.”
Crypto Projects
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.