Crypto Market Reacts to U.S. Presidential Debate, Analysts Warn of Risk-Off Sentiment

Following the U.S. presidential debate between Donald Trump and Kamala Harris, the crypto market saw a sharp "sell-the-news" reaction. Bitcoin's price dropped 2.6% to $56,100 before recovering slightly to $56,400. Analysts from Bitfinex and QCP Capital noted that Trump’s performance was viewed as weaker compared to his previous debates, leading to intensified risk-off behavior in crypto markets. 

This shift in sentiment comes as a Trump victory is generally seen as favorable for risk assets, given his positive stance on crypto and promises to remove SEC Chair Gary Gensler. Meanwhile, Harris’ odds of winning increased in prediction markets like Polymarket, rising to 49%, while Trump's odds fell by 3%. Analysts suggest Harris' rise adds pressure to crypto prices, with concerns about regulatory challenges under a potential Harris administration. Overall, both Bitcoin and Ether experienced declines, with Bitcoin down 1.5% in the past 24 hours. The debate has heightened market uncertainty leading up to the November election, with analysts expecting continued volatility in crypto.

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