Crypto stocks rally after U.S. presidential debate; Coinbase, MicroStrategy, and mining stocks show quick recovery from initial dips. By Ronny Mugendi 15 hours ago Updated 5 hours ago
Highlights
- Crypto stocks rallied post-debate, with Coinbase closing at $157.
- Trump-themed memecoins drop sharply, reflecting increased political sensitivity.
- Bitcoin regained losses, surpassing $58K after an initial 3% drop.
- Harris leads Trump by 2.6 points in recent FiveThirtyEight poll.
Crypto stocks experienced notable fluctuations following the recent presidential debate between Donald Trump and Kamala Harris. Market reactions were swift as early polls indicated a preference for Harris over Trump, affecting companies with exposure to cryptocurrencies.
Crypto Stocks Surge as Harris Tops Trump in Presidential Debate
Following the recent U.S. presidential debate, crypto stocks demonstrated significant recovery after initially experiencing a decline. The debate’s outcome seemed to favor Kamala Harris, as reflected in immediate polls. This shift in public sentiment had a direct impact on the financial markets, particularly those involving cryptocurrency stocks.
The cryptocurrency exchange, Coinbase, saw a sharp decrease in its stock price early in the trading day, touching a low of $150. Following this dip, Cathie Wood’s Ark Investments capitalized, purchasing 53708 Coinbase stocks worth over $8 million at $150.
This strategic purchase came as crypto-related stocks experienced a downturn in the early trading hours of Wednesday, attributed to the Trump and Democratic Party candidate debate market impact.
However, by the close of trading, Coinbase (coin) price had posted a gain, ending the day at approximately $162.89 in after-hours trading. More so, this stock price showed a 3.65% increase, indicative of the rapid responsiveness of crypto stocks to political events.
Market Recovery and Stability
Crypto stocks like MicroStrategy and mining companies Marathon Digital and Riot Platforms initially felt the market’s adverse reaction. MicroStrategy (MSTR) stock dipped early but closed slightly up at $130.77, indicating resilience in the face of political fluctuations.
In addition, Marathon Digital (MARA) also recovered from its initial falls, surging 0.063% and closing at 15.80.
In contrast, Hut 8 Mining (HUT) stock price saw an increase throughout the day, closing at $10.89, a 2.93% surge today. This highlights the differences in individual stock performance amid varied investor sentiments and political developments.
Broader Impact on Cryptocurrency Markets
The broader cryptocurrency market also mirrored the volatility of crypto stocks, with Bitcoin price by 3% following the debate. However, it quickly made up for the losses surging past the $58K mark at press time. Crypto investors are however confident that Bitcoin will reach $100,000 regardless of whether Donald Trump or Kamala Harris wins.
Additionally, the overall market capitalization of cryptocurrencies initially shed $60 billion but regained much of it, demonstrating a 2.3% increase shortly thereafter.
Concurrently, Trump-themed memecoins, which became popular during the campaign, suffered notably. CoinGecko data shows these tokens experienced sharp declines within 24 hours post-debate. For instance, CoinGape reported that MAGA price dropped 10% soon after the Polymarket data showed 3% drop in Trump’s win chances following the Trump Harris debate
The broader crypto community has demonstrated strong support for Donald Trump due to his vocal advocacy for digital assets. In contrast, Kamala Harris unclear position on cryptocurrencies has contributed to increased market sensitivity to the debate.
Nonetheless, a recent FiveThirtyEight poll reveals Harris holds a 2.6 percentage point advantage over Trump as of September 11. As the U.S. presidential race heats up, the political leanings and policies of candidates like Harris and Trump could sway investors and market trends.