Following the recent clash between Donald Trump and Kamala Harris in the presidential debate, there were significant fluctuations in crypto stocks. Market responses were prompt as initial polls indicated a preference for Harris over Trump, impacting companies connected to cryptocurrencies.
Rise in Crypto Stocks as Harris Outshines Trump in Debate
After the latest U.S. presidential debate, crypto stocks displayed a remarkable recovery following an initial decline. Kamala Harris’s advantage in the debate was swiftly reflected in polls. This shift in public sentiment had a direct effect on financial markets, especially those involving crypto stocks.
The cryptocurrency platform, Coinbase, observed a sharp drop in its stock price at the start of the trading day, hitting a low of $150. Following this decline, Cathie Wood’s Ark Investments seized the opportunity by purchasing 53708 Coinbase stocks valued over $8 million at $150.Â
This strategic acquisition coincided with a downturn in crypto-related stocks during early trading on Wednesday, attributed to the impact of the debate between Trump and the Democratic candidate.
However, by the conclusion of trading, Coinbase (coin) saw an upturn, closing the day at around $157 in after-hours trading. Furthermore, the stock posted a 2.14% increase during pre-market trading sessions. This shift underscores how quickly crypto stocks respond to political happenings.
Recovery and Stability in the Market
Crypto stocks such as MicroStrategy and mining firms Marathon Digital and Riot Platforms initially felt the adverse market reaction. MicroStrategy (MSTR) stock declined initially but ultimately closed slightly lower at $129.30, showcasing resilience amidst political fluctuations.Â
Furthermore, Marathon Digital (MARA) and Riot Platforms (RIOT) rebounded from their initial setbacks, surging by 2.09% and 1.55% respectively during pre-market trading.      Â
Conversely, Hut 8 Mining (HUT) witnessed a rise throughout the day, trading at $10.58 with a 1.29% surge today. This illustrates the varying performances of individual stocks amid diverse investor sentiments and political developments.
Broader Influence on Cryptocurrency Markets
The broader cryptocurrency market echoed the volatility seen in crypto stocks, with Bitcoin prices plummeting by 3% after the debate. However, it swiftly recovered, surpassing the $58K mark at the time of writing. Investors in the crypto space remain confident that Bitcoin will hit $100,000 regardless of the election outcome.
Moreover, the overall cryptocurrency market capitalization initially dropped by $60 billion but regained much of the losses, showing a 2.3% increase shortly afterwards.
Simultaneously, Trump-themed memecoins, which gained popularity during the campaign, experienced significant declines. CoinGecko data revealed sharp drops in these tokens within 24 hours post-debate. For example, CoinGape reported that MAGA price decreased by 10% after Polymarket data indicated a 3% decrease in Trump’s chances of winning post-debate.
The broader crypto community has shown strong support for Donald Trump due to his outspoken endorsement of digital assets. Conversely, the unclear stance of Kamala Harris on cryptocurrencies has added to the market’s sensitivity towards the debate.
Nevertheless, a recent FiveThirtyEight poll indicates that Harris holds a 2.6 percentage point lead over Trump as of September 11. As the U.S. presidential race intensifies, the political leanings and policies of candidates like Harris and Trump could sway investors and market trends.
The post These Crypto Stocks Surge as Harris Tops Trump in Debate Polls was first published on CoinGape.