Bitcoin (BTC) experienced a notable decline following the conclusion of the second U.S. presidential debate. According to data from CoinMarketCap, the cryptocurrency dropped over 1.5%, falling to $55,950.
This downturn wasn’t limited to Bitcoin; other cryptocurrencies, including Dogecoin (DOGE), also saw significant price changes. Dogecoin recorded a 1.79% decline in the last 24 hours.
Market reactions to U.S. political developments
The political developments in the United States have significantly impacted global markets, extending their influence to the cryptocurrency sector. The U.S. presidential debate caused noticeable shifts, particularly in the PolitiFi category, where tokens themed around political figures faced volatility. The PolitiFi market cap decreased to $544,384,246, a 7.6% drop, as reported by CoinGecko.
Image showing Crypto prices of the major cryptos. Source: CoinmarketCap
The Trump-themed tokens were hit the hardest, with the Doland Tremp (TREMP) token on Solana falling by 25.52%, the MAGA Hat (MAGA) token decreasing by 19%, and the MAGA (TRUMP) token dropping by 12.3%. In contrast, Kamala Horris’ (KAMA) token saw a 6.3% increase, reflecting the public’s reaction to the debate.
Yen strengthens amid market uncertainty
The Japanese yen strengthened in traditional markets, reaching 140.70 per U.S. dollar, surpassing the 141.68 level recorded in August. This appreciation followed the Bank of Japan’s decision to hike interest rates for the first time in decades. The yen’s rise highlights its status as a safe-haven currency in times of market uncertainty.
Futures linked to the S&P 500 experienced a 0.4% decline, and Chinese stocks dropped to a seven-month low. These movements are closely tied to the public’s response to the issues discussed during the U.S. presidential debate.
Political debate drives market dynamics
The recent U.S. presidential debate played a crucial role in shaping market dynamics. The negative performance of Trump-themed PolitiFi tokens can be linked to public sentiment regarding the candidates’ performance. According to Polymarket Betting, Kamala Harris was perceived to have outperformed her Republican opponent, contributing to the gains in her themed tokens.
The losses in Trump-themed tokens reflect a more cautious outlook on his candidacy. The debate also had a ripple effect on traditional markets, with Trump’s defense of trade tariffs and comments on higher prices potentially influencing the decline in S&P 500 futures and Chinese stocks.
The second U.S. presidential debate has left its mark on cryptocurrency and traditional financial markets, underscoring the intricate connection between politics and market behavior.