- Cryptocurrency-focused altcoins such as TRUMP, TREMP, and BODEN experienced losses ahead of Thursday’s presidential debate.
- Traders are keenly watching the debate, as Trump’s stance on crypto has become a significant part of his presidential campaign.
- The crypto community largely believes that a Trump victory would be beneficial for the sector.
Ahead of the upcoming presidential debate, key altcoins and Bitcoin are experiencing fluctuations, with traders closely monitoring potential impacts on the crypto market.
Altcoins Market in a State of Anticipation
On the eve of the U.S. presidential debate, the crypto market hasn’t shown significant excitement. As of this writing, TRUMP, the first major token in the PoliFi sector, is trading at $8.5, reflecting a 0.5% dip in the past 24 hours. Similarly, Solana-based TREMP saw a 7.2% drop, trading at $0.74. Biden-themed BODEN coin plummeted by 16%, settling at $0.13. Meanwhile, Bitcoin, the leading cryptocurrency by market capitalization, declined by 1%, trading at $61,000.
TS Lombard notes that the first presidential debate of 2024, scheduled for Thursday at 9:00 PM ET, has the potential to surprise several voters and reshape the competitive race. In a note sent to clients on Tuesday, TS Lombard stated:
If Biden lags behind, pressure from major Democratic donors to drop his candidacy will increase, especially as he’s fallen behind in fundraising for two consecutive months. Conversely, if Trump loses control, Republicans might be uneasy, but the GOP ticket won’t change. Instead, responsibility will fall on Trump’s yet-to-be-announced vice-presidential candidate to stabilize the campaign. In both scenarios, the bar set by the initial Trump-Biden debate is low, but the stakes are high.
Expectations from the Crypto Industry
The crypto industry is lobbying for digital assets to be discussed during the televised debates, and potential remarks from both candidates could trigger market volatility. Traders will closely observe the debate as Trump’s incorporation of crypto assets into his campaign has caught significant attention. By forging strong ties with industry leaders and emphasizing the need to mine remaining Bitcoin in the U.S., Trump has spotlighted digital currencies. Consequently, Bitcoin is now perceived as a “Trump trade,” with Standard Chartered predicting it could soar to $150,000 in the event of a Trump victory.
Biden, on the other hand, has remained largely silent, asking federal agencies to study the risks and opportunities of cryptocurrencies and explore the potential launch of a central bank digital currency managed by the Fed. “Leading up to tonight’s first presidential debate, crypto traders will be attentively looking for clues on what the November elections mean for Bitcoin and the broader sector,” said Neil Roarty, an analyst at the investment platform Stocklytics. He further commented:
The general consensus within the crypto community is that a Trump victory would be favorable for the sector. Beyond Trump’s vocal support, Bitcoin tends to perform well during periods of political and economic uncertainty, and a second Trump presidency would likely bring more of that.
Conclusion
As the presidential debate approaches, crypto traders are gearing up for significant market movements. The potential impacts of the candidates’ views on digital assets will be crucial in shaping the future trajectory of cryptocurrencies. Regardless of the outcome, the crypto community remains optimistic that increased visibility and discussion will ultimately benefit the sector.
