Cryptocurrency stocks fell in premarket trading on Wednesday following the presidential debate between Democratic nominee Kamala Harris and incumbent Republican President Donald Trump.
Trump has positioned himself as a pro-crypto candidate, promising more friendly regulation of the crypto industry. In July, at a conference in Nashville, Trump said he wanted the United States to become the crypto capital of the world and the global Bitcoin superpower.
However, Harris has not taken an official position on cryptocurrencies during her campaign as a Democratic candidate so far. However, her debate performance appears to have had an impact on cryptocurrency stocks.
Bitcoin, the largest cryptocurrency, is down about 0.8% in the past 24 hours, while ether is down 1%. The drop suggests the market may be reacting to the potential regulatory implications of a Harris presidency.
Cryptocurrency mining companies Riot Platforms (RIOT), Marathon Digital Holdings (MARA) and Hut 8 Mining Corp (HUT) also saw losses, with their shares falling more than 2% in premarket trading on Wednesday. Microstrategy, Inc. (MSTR), a software company that has been heavily invested in Bitcoin, saw a drop of more than 3%.
The cryptocurrency market has gained mainstream traction, with support from Wall Street institutions and corporate giants like Elon Musk. However, the industry still faces scrutiny from regulators like the U.S. Securities and Exchange Commission, which has accused it of violating securities laws.
The presidential debate highlights the potential impact of political developments on the cryptocurrency market. As the election approaches, investors will be closely watching the campaign and potential regulatory implications for the industry.
