Bitcoin price fell as traders weighed the US presidential debate between Democratic candidate Kamala Harris and Republican candidate Donald Trump, who supports the cryptocurrency sector.
The largest digital asset fell as much as 2.6% before recovering some of its losses to trade at $56,490 at 7:40 a.m. London time on Wednesday. Elsewhere, US stock futures and the US dollar index fell, while Treasuries were steady.
Bitcoin in focus ahead of election
The largest cryptocurrency is one of several so-called “Trump trades” due to the former US president’s vocal support for the digital asset sector. Bitcoin has been in focus as an asset that could provide immediate clues as to who has the upper hand in the debate.
Vice President Harris has yet to spell out her position on cryptocurrency policy. Last month, an adviser to her campaign said Harris would support measures that would help the sector grow. The adviser also noted continued interest in implementing safeguards against harmful practices.
Trump has turned to the cryptocurrency industry for donations and votes amid a tight race to win the White House, even pledging to make the United States the “crypto capital of the world.” His stance is a complete about-face, considering the former president previously called the sector a “scam.”
Trump’s Crypto Support
The Republican nominee has released his fourth batch of non-fungible tokens. The tokens, which represent ownership of assets such as images of Trump riding a motorcycle or boxing, have raised millions of dollars.
Trump and his sons Eric and Don Junior have also promoted World Liberty Financial, a proposed decentralized finance initiative within the cryptocurrency space. Details have been limited. Last week, hackers temporarily hacked some of the Trump family’s social media accounts and posted a fake post about the project.
The cryptocurrency industry is playing an influential role in the presidential election through large donations to political action committees. Cryptocurrency companies are seeking more supportive regulations, and are pushing to counter the critical stance of the Securities and Exchange Commission, headed by Gary Gensler.
Bitcoin hit a record high of $73,798 in March, driven by demand for exchange-traded funds linked to it in the United States. Although that rally has since subsided, the gains have been tempered by the market’s severe downturn in 2022 and a series of bankruptcies, including that of FTX, one of the largest financial frauds in the country’s history.
