Bitcoin Falls Amid Heated Presidential Debate, Crypto Markets Weigh Uncertainty

Bitcoin’s price dropped on Wednesday, following a broader sell-off in risk assets as the contentious U.S. presidential debate increased concerns about the upcoming 2024 election. The cryptocurrency slipped 1.2%, reaching $56,258.6 by 05:58 GMT, while the broader crypto market also saw declines. Bitcoin turned negative after the conclusion of the debate, in tandem with a dip in U.S. stock index futures.

Harris-Trump Debate Fuels Uncertainty for 2024 and Crypto Regulation

The debate between Democratic nominee Kamala Harris and Republican nominee Donald Trump was fierce, with both candidates exchanging sharp remarks over their policies and personal differences. The debate underscored the likelihood of a closely contested 2024 election, leaving less than two months to the vote.

Trump’s candidacy sparked some anxiety in the crypto market, given his clear support for a favorable regulatory environment for cryptocurrencies. Meanwhile, Harris has yet to express any position on the matter, but her stance is expected to continue the Biden administration’s tough approach to crypto regulation. However, neither candidate mentioned cryptocurrency during the debate, and Trump did not include any reference to the sector in his discussion of economic policies.

Polls taken before the debate showed Harris holding a slight advantage over Trump, especially after her official selection as the Democratic candidate in late August.

Bitcoin Faces Weekly Losses, Remains Rangebound

Bitcoin has faced significant losses over the past week, driven by a broader risk-off sentiment in financial markets. The token dropped as low as $52,000 last week before regaining some ground but has largely remained within the same trading range seen throughout much of 2023. Retail interest in Bitcoin has waned, as has the enthusiasm surrounding spot exchange-traded funds (ETFs).

Altcoins Follow Bitcoin’s Lead as CPI Data Looms

The wider cryptocurrency market also pulled back, with Ethereum (Ether) down 0.8% to $2,330.17. Other prominent altcoins, such as Solana (SOL), XRP, Cardano (ADA), and Polygon (MATIC), traded flat or slightly lower. Meanwhile, memecoin Dogecoin (DOGE) saw a more substantial drop, losing 3.8%.

In addition to political uncertainty, crypto traders were awaiting a key U.S. Consumer Price Index (CPI) inflation reading due later on Wednesday. The report is expected to influence the Federal Reserve’s decision on interest rates, which is set to be discussed at next week’s meeting.