Crypto stocks drop after U.S. presidential debate

Cryptocurrency stocks experienced a decline in premarket trading on Wednesday following the presidential debate between Democratic candidate Kamala Harris and Republican incumbent Donald Trump.

Trump had positioned himself as a pro-crypto candidate, promising friendlier regulation for the cryptocurrency industry. In July, at a conference in Nashville, Trump said he wants the U.S. to become the “crypto capital of the planet” and the Bitcoin “superpower of the world.”

However, Harris has not yet taken an official position on cryptocurrency during her run as the democratic nominee so far. However, her performance in the debate seems to have impacted crypto stocks.

Bitcoin, the largest cryptocurrency, is currently down around 0.8% in the last 24 hours, while ether fell by 1%. This decline suggests that the market may be reacting to the potential regulatory implications of a Harris presidency.

Crypto mining companies, such as Riot Platforms (NASDAQ:RIOT ), Marathon Digital Holdings (NASDAQ:MARA ), and Hut 8 Mining Corp (HUT), also experienced losses, with shares falling more than 2% premarket Wednesday. Microstrategy, Inc. (NASDAQ:MSTR ), a software firm that has invested heavily in Bitcoin, saw a drop of more than 3%.

The cryptocurrency market has been gaining mainstream appeal, with support from Wall Street institutions and corporate titans like Elon Musk. However, the industry continues to face scrutiny from regulators like the U.S. Securities and Exchange Commission, which have accused it of violating securities laws.

The presidential debate highlights the potential impact of political developments on the cryptocurrency market. As the election draws closer, investors will be closely watching the campaign and the potential regulatory implications for the industry.

Source: Investing.com