US cryptocurrency shares fell in early trading on Wednesday after Democratic candidate Kamala Harris put her Republican rival and crypto supporter Donald Trump on the defensive in a presidential debate.
The former president had positioned himself as a pro-bitcoin candidate whose return could mark a win for the industry that has accused the current administration of regulatory overreach.
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Bitcoin, the world’s largest cryptocurrency, was down 1.6% on Wednesday, while ether fell 2%.
Trump had in July courted the crypto industry in a conference in search of donations and votes with a promise of friendlier regulation.
“Never sell your bitcoin,” Trump said at the time, adding that if elected the U.S. government will hold bitcoin as a store of value.
Meanwhile, Harris has yet to detail a policy position on crypto.
In the run-up to the debate, many market participants and analysts viewed bitcoin as the asset to watch for clues on which candidate was gaining an upper hand.
“The U.S. presidential debate did not address crypto directly. However, market sentiment is shifting in favor of Kamala Harris,” Valentin Fournier, analyst at research firm BRN.
The crypto market is often seen as a risky fringe business with high volatility and has drawn sharp scrutiny from the U.S. Securities and Exchange Commission, which has accused it of flouting securities laws.
But its mainstream appeal has improved a lot, thanks to the support from Wall Street institutions and corporate titans like Elon Musk and the approval of U.S. exchange-traded crypto funds.
Crypto miners Riot Platforms Marathon Digital, and U.S.-listed shares of Hut 8 were down between 2.5% and 3.4% before the bell.
Software firm and BTC buyer MicroStrategy fell 4% and crypto exchange Coinbase Global and Blockchain farm operator Bitfarms were down 2.5% and 3%, respectively.
