Market Analysis
Bitcoin’s price declined on Wednesday, reflecting a broader fall in risk-sensitive assets after a heated U.S. presidential debate pointed to a potentially contentious 2024 election.
Bitcoin dropped 1.2% to $56,258.6 by 01:58 ET (05:58 GMT), with other major cryptocurrencies also slipping. The decline came following the debate, which coincided with a downturn in U.S. stock index futures.
Harris-Trump debate signals tight 2024 race, crypto regulation remains unclear
Democratic candidate Kamala Harris appeared to outperform current President Joe Biden during a debate with Republican nominee Donald Trump, where both candidates exchanged sharp criticisms on policy and personal matters.
The debate raised the prospect of a closely contested 2024 presidential election, with less than two months until the vote.
Trump’s increasing competitiveness brought some concern to crypto markets, as he has previously voiced support for the industry, vowing to create a more favorable regulatory environment.
Harris has not yet addressed cryptocurrency regulation, but it is widely expected that she would maintain the Biden administration’s stricter stance on the sector.
Cryptocurrency was not directly discussed during Tuesday night’s debate, and Trump did not mention the industry while outlining his economic plans.
Polling prior to the debate gave Harris a slight edge over Trump, bolstered by her formal nomination as the Democratic candidate in late August.
Bitcoin faces weekly losses, remains within range
Bitcoin, the largest cryptocurrency, has struggled with steep losses in the past week, mirroring a broader risk-off sentiment in financial markets.
After falling as low as $52,000 last week, Bitcoin has since recouped some losses, although it remains confined to a trading range that has persisted for much of the year. Retail investor interest continues to wane, as enthusiasm surrounding potential spot exchange-traded funds (ETFs) fades.
Crypto market declines ahead of CPI data
Broader cryptocurrency markets also saw losses, with Ether, the second-largest crypto, slipping 0.8% to $2,330.17.
SOL, XRP, ADA, and MATIC traded in a narrow range, while DOGE, the popular memecoin, dropped 3.8%.
In addition to the uncertainty surrounding the presidential race, investors were cautious ahead of a key U.S. consumer price index (CPI) inflation report due later on Wednesday.
The data is expected to influence the Federal Reserve’s upcoming meeting and play a role in shaping its outlook on interest rates.
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