These Crypto Stocks Surge as Harris Tops Trump in Debate Polls

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As a seasoned analyst with over two decades of experience in financial markets, I have witnessed numerous instances where political events significantly impact stock prices, and this week was no exception. The U.S. presidential debate between Donald Trump and Kamala Harris has undeniably sent ripples through the cryptocurrency market, demonstrating just how intertwined these spheres are becoming.

The prices of crypto-related stocks saw significant swings after the latest debate between Donald Trump and Kamala Harris. Rapid market responses occurred as preliminary surveys suggested that more people preferred Harris over Trump, which in turn impacted firms associated with digital currencies.

Crypto Stocks Surge as Harris Tops Trump in Presidential Debate

After the latest U.S. presidential debate, cryptocurrency stocks showed a noticeable rebound following an initial dip. It appeared that the debate’s result might have been in favor of Kamala Harris, as suggested by instant polls. This change in public opinion had a tangible effect on financial markets, notably those focusing on cryptocurrency stocks.

The cryptocurrency exchange, Coinbase, saw a sharp decrease in its stock price early in the trading day, touching a low of $150. Following this dip, Cathie Wood’s Ark Investments capitalized, purchasing 53708 Coinbase stocks worth over $8 million at $150. 

On Wednesday morning, this strategic acquisition took place when cryptocurrency-linked stocks faced a decline, which was likely due to the influence of the market following the Trump vs. Democratic Party candidate debate.

By the market’s close, Coinbase’s (COIN) share price had risen, standing at around $157 in after-hours trading. Furthermore, its stock price during the pre-market trading indicated a 2.14% increase. This upturn suggests that crypto stocks can swiftly react to political occurrences.

Market Recovery and Stability

Initially, shares of crypto-focused companies such as MicroStrategy (MSTR), Marathon Digital, and Riot Platforms experienced a setback due to the market’s unfavorable response. However, despite the political uncertainties, MicroStrategy’s stock showed some strength, ending the day slightly lower at $129.30, demonstrating a degree of resilience.

Furthermore, Marathon Digital and Riot Blockchain also bounced back from their early drops, experiencing increases of 2.09% and 1.55%, respectively, during the pre-market trading period.

Instead of that, let me rephrase it for you: Contrary to other stocks, Hut 8 Mining (HUT) experienced a rise in its share price during the day, ending at $10.58, marking a 1.29% growth today. This underscores the diverse outcomes of individual stocks, influenced by differing investor attitudes and political events.

Broader Impact on Cryptocurrency Markets

As a market analyst, I observed a reflection of the volatile nature of cryptocurrency stocks within the broader market. Specifically, the value of Bitcoin dipped by 3% during the recent debate, but promptly recovered and soared beyond the $58K threshold as I’m writing this.

Furthermore, the total value of all cryptocurrencies initially dropped by around $60 billion, however, it soon recovered a significant portion of that loss, resulting in a 2.3% rise in market capitalization shortly afterwards.

Instead, it’s worth noting that Trump-themed meme coins, which had gained popularity during the election period, saw a significant decrease in value. Data from CoinGecko indicates a steep drop for these tokens immediately following the debate, with values falling substantially within just 24 hours.

For example, According to CoinGape’s report, the price of MAGA fell by 10%, possibly as a result of the Polymarket data showing a decrease of 3% in Trump’s chances of winning after the Trump-Harris debate.

A significant portion of the cryptocurrency world is backing Donald Trump because he’s been vocal about digital assets. On the other hand, Kamala Harris’ stance on cryptocurrencies remains unclear, which seems to have heightened market awareness and sensitivity towards the ongoing discussions about it.

In my ongoing research, I’ve discovered that, as of September 11, a FiveThirtyEight poll indicates Kamala Harris leads Donald Trump by a margin of 2.6 percentage points. As the United States presidential race intensifies, the ideological stances and policies of contenders such as Harris and Trump could significantly impact investor decisions and financial trends.

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2024-09-12 13:38