In the aftermath of the recent presidential debate between Donald Trump and Kamala Harris, crypto stocks went through significant fluctuations. The market reacted swiftly as early polls showed a preference for Harris over Trump, impacting companies linked to cryptocurrencies.
As a result of the debate, crypto stocks saw a noteworthy recovery following an initial decline. The shift in public sentiment toward Harris had a direct influence on financial markets involving stocks. For instance, Coinbase witnessed a sharp drop in stock price early in the trading day, hitting a low of $150. Ark Investments, led by Cathie Wood, took advantage of this dip by purchasing over $8 million worth of Coinbase stocks at $150.
Despite the initial downturn in crypto-related stocks due to the debate’s market impact, Coinbase’s price bounced back by the end of the trading day, reaching around $157 in after-hours trading. Additionally, the stock displayed a 2.14% increase during pre-market trading sessions, demonstrating the responsiveness of crypto stocks to political events.
Certain crypto stocks such as MicroStrategy, Marathon Digital, and Riot Platforms initially experienced negative market reactions. However, they showed resilience and recovered during the pre-market trading session. In contrast, Hut 8 Mining stock price rose throughout the day, reaching $10.58, showcasing the varied performance of individual stocks amid changing investor sentiments.
The broader cryptocurrency market also reflected the volatility of crypto stocks, with Bitcoin’s price initially dropping by 3% post-debate but subsequently recovering above $58K. The overall market capitalization of cryptocurrencies briefly decreased by $60 billion before bouncing back with a 2.3% increase.
Interestingly, Trump-themed memecoins faced significant declines following the debate, indicating a notable shift in investor sentiment. MAGA price, for example, dropped 10% after Polymarket data illustrated a 3% decrease in Trump’s likelihood of winning post-debate.
Despite Trump’s vocal support for digital assets, the crypto community largely favored him, whereas Harris’s unclear stance on cryptocurrencies heightened market sensitivity to the debate. A recent FiveThirtyEight poll indicated Harris holding a 2.6 percentage point lead over Trump as of September 11, underscoring the potential impact of political preferences on market trends during the ongoing U.S. presidential race.