There was no mention of cryptocurrencies at all in the first presidential debate between Vice President Kamala Harris and former President Donald Trump, which disappointed many crypto enthusiasts.
As a result, the cryptocurrency markets reacted sharply, especially meme coins associated with Donald Trump.
Donald Trump's odds of winning the election drop after debate
As a result of the debate focusing on the economy, immigration, and foreign policy, several Trump-themed meme coins saw significant declines. For example, the PolitiFi meme coin saw its total market cap drop by 8.7%.
Certain coins were hit harder; MAGA (TRUMP) fell 10.0%, while MAGA Hat (MAGA) plunged 22.5%. Doland Tremp (TREMP) fell 27.5%, while Super Trump (STRUMP) fell 12.3%. Meanwhile, the Kamala Horiz (KAMA) meme coin gained 7.3%.
Read more: 7 Hot Meme Coins and Altcoins That Will Be Trending in 2024
These fluctuations in the value of the meme coin coincide with changes in election odds on platforms like Polymarket. Harris’s odds of winning increased by 3% after the debate, while Trump’s odds decreased by the same percentage.
As a result, these two presidential candidates are locked in a tight race on this decentralized betting platform.
Analysts have long debated the impact of political figures on cryptocurrency markets. For example, Bernstein analysts predicted in November that a Trump victory could push Bitcoin to $90,000 by the end of the year.
This expectation stems from Trump’s pro-crypto stance. On the other hand, the cryptocurrency market outlook under President Harris is uncertain, with some analysts fearing that Bitcoin could fall to $40,000 .
Additionally, the cryptocurrency industry has made significant political investments. Crypto companies, including Coinbase and Ripple, have invested more than $11.9 billion in the 2024 election . Their goal is to support candidates who support clear cryptocurrency regulation.
The biggest beneficiary of these donations was Fairshake PAC, which received $202.99 billion, more than half of which, $107.99 billion, came from cryptocurrency companies like Coinbase and Ripple.
Since 2010, crypto companies have become major political donors, donating $12.9 billion, or 15% of all known corporate political spending, which totals $88.4 billion. Their financial influence is second only to the fossil fuel industry’s election spending.
Read more: Cryptocurrency Regulation: What Are the Pros and Cons?
The lack of cryptocurrency discussion during the presidential debate was disappointing to many in the cryptocurrency community.
“One in five American adults owns cryptocurrency, yet it wasn’t mentioned in the presidential debates as an issue voters care about. If you love crypto, make your voice heard and commit to voting this November,” Coinbase said .
