PoliFi Tokens, BTC Under Pressure Ahead of Biden-Trump Debate

If crypto-friendly Republican candidate Trump goes off the rails, Republicans may wince, but the GOP ticket will likely not change.

PoliFi Tokens, BTC Slip Ahead of Biden-Trump Debate

If crypto-friendly Republican candidate Trump goes off the rails, Republicans may wince, but the GOP ticket will likely not change.

The crypto market showed no signs of excitement ahead of Thursday's pivotal U.S. Presidential debate between incumbent Joe Biden and his crypto-friendly Republican candidate, Donald Trump.

At 04:56 UTC, TRUMP, the first major token in the PoliFi sector, traded near $8.5, slipping 0.5% over 24 hours. Its Solana-based counterpart TREMP lost 7.2% to 74 cents and the Joe Biden-themed BODEN coin dropped 16% to 13 cents, data from CoinGecko showed.

Bitcoin, the world's largest cryptocurrency by market capitalization, slipped 1% to trade at $61,000.

The first presidential debate of 2024, set for Thursday at 21:00 ET, is likely to bring "a few voter surprises but has the potential to recast if not shape up a dead heat race," according to TS Lombard.

"If shaky Biden underperforms his rival, pressure from big Democrat donors to ditch his candidacy will surge, especially with Biden now trailing on fundraising for the second straight month. If Trump goes off the rails, Republicans may wince, but the GOP ticket won't change. Rather, the onus will shift to Trump's as-yet-announced VP pick to steady his campaign," TS Lombard said in a note to clients on Tuesday, referring to the Republican and Democratic parties, respectively.

"In both cases, the bar (set by the first truculent Trump-Biden debate) is low, but the stakes are high," Lombard added.

The crypto industry has lobbied to ensure digital assets are discussed in the televised presidential faceoff, and potential comments from the two candidates could inject volatility into the market.

Crypto traders will be closely watching the debate, as Trump has made digital assets a vital issue in his presidential campaign by courting industry leaders and recently stressing the need to mine all remaining bitcoin in the U.S. As such, the crypto is now seen as a Trump trade, with Standard Chartered anticipating a record rally in BTC to $150,000 on a potential Trump victory.

Biden, on the other hand, has been largely silent on crypto, having asked federal agencies to explore its risks and opportunities, including the potential debut of a Fed-managed central bank digital currency.

"Ahead of tonight's first presidential debate, crypto traders will be watching keenly for clues as to what November's election could mean for Bitcoin and the wider sector," said Neil Roarty, an analyst at investment platform Stocklytics, in an email to CoinDesk.

"The consensus among the crypto community seems to be that a Trump victory would be favorable for the industry. Aside from the vocal support he’s given, bitcoin has tended to perform well during periods of political and economic uncertainty, and a second Trump presidency will likely see more of both," Roarty added.

CoinDesk's Markets team is covering the U.S. presidential debate from the perspective of crypto traders. Follow their live updates here.

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