The cryptocurrency market experienced a volatile trading day on September 11, as Bitcoin mining-related stocks saw early dips following a heated debate between U.S. presidential candidates Donald Trump and Kamala Harris. Publicly traded crypto firms, which have largely favored Trump’s pro-crypto stance, were quick to feel the impact as market sentiment shifted after polls showed Harris leading the debate.
According to a YouGov survey, 54% of voters believed Harris outperformed Trump, with just 31% giving the win to Trump. A CNN flash poll mirrored these results, further intensifying the market response. Investors reacted swiftly to the news, resulting in a dip across Bitcoin-linked stocks.
Market Dips, But A Swift Recovery
Leading cryptocurrency exchange Coinbase (COIN) witnessed a sharp decline, dropping to a low of $150 in the morning trading session. However, the stock quickly rebounded, gaining 5.3% by the end of the day and closing at around $157 in after-hours trading. This recovery brought Coinbase back to its pre-debate levels, reflecting the broader resilience of the market despite initial panic.
MicroStrategy (MSTR), a company known for its significant Bitcoin holdings, also experienced a dip. The stock fell to $122 during the trading day but managed to recover, closing only 0.26% lower at $129.30. In after-hours trading, it saw a slight decrease to $128.50, but the overall market sentiment remained steady.
Bitcoin mining companies were similarly affected, with Marathon Digital (MARA) and Riot Platforms (RIOT) both taking early hits. Marathon dipped 0.94%, while Riot fell 2.07% before recovering by the day’s end. Despite these setbacks, the stocks closed only slightly lower than their pre-debate prices, demonstrating the sector’s ability to bounce back.
Interestingly, Hut 8 (HUT) bucked the trend, closing up 1.29% after dropping to a low of $9.76 earlier in the day. By the end of trading, Hut 8 had climbed to $10.58, the only crypto-related stock to finish the day in positive territory.
Bitcoin and Crypto Markets Follow Suit
The broader cryptocurrency market also took a hit, with Bitcoin (BTC) prices falling 3.7% in the aftermath of the debate, reaching an intraday low of $55,573. However, just like the stocks, Bitcoin quickly rebounded, regaining ground to reach $57,900 by early trading on September 12. Overall, the crypto market capitalization shed $60 billion but has since recovered 2.3%, indicating that investors are regaining confidence.
Trump-themed memecoins, which have garnered attention during the campaign, did not fare as well. According to data from CoinGecko, all Trump-themed tokens took a significant hit, plunging by double digits in the 24 hours following the debate. This drop highlights the speculative nature of these assets, which are often highly sensitive to political sentiment.
The Debate’s Broader Impact on Crypto
The crypto industry has largely rallied behind Donald Trump due to his promises of favorable policies for digital assets. In contrast, Kamala Harris’ stance on cryptocurrencies remains unclear, making the market’s reaction more pronounced. Despite this uncertainty, national polling data from FiveThirtyEight showed Harris maintaining a 2.6 percentage point lead over Trump on September 11, suggesting the debate had little effect on voter preferences but stirred the crypto market nonetheless.
Also Read: Japan’s Tepco Turns 1,920 GWh Of Wasted Solar Energy Into $2.5B Bitcoin Mining Opportunity
As the U.S. presidential race continues, it’s clear that political events can have significant ramifications for the crypto sector. While pro-crypto policies from Trump have won him favor among digital asset enthusiasts, the market’s reaction to Harris’ strong debate performance shows that investors are closely watching for any shifts in political sentiment that could influence future regulatory landscapes.
For now, crypto markets and stocks are showing their resilience, bouncing back from early losses as the dust settles from the debate. As political uncertainty lingers, the volatility in the crypto space may continue, keeping investors on edge as the 2024 election approaches.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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