PoliFi Token and BTC Under Pressure Ahead of Biden-Trump Debate

Author: Omkar Godbole, CoinDesk; Compiler: Wuzhu, Golden Finance

Summary

• Bitcoin and PoliFi tokens TRUMP, TREMP and BODEN suffer losses ahead of Thursday’s presidential debate.

• Crypto traders will be watching the debate closely as Trump has made digital assets a key issue in his presidential campaign.

• The consensus in the crypto community seems to be that a Trump victory would be good for the industry.

The crypto market is showing no signs of excitement ahead of Thursday’s crucial debate.

As of 04:56 UTC, TRUMP, the largest token in the PoliFi space, was trading near $8.5, down 0.5% over 24 hours. Solana-based TREMP tokens fell 7.2% to 74 cents, while Joe Biden-themed BODEN tokens dropped 16% to 13 cents, according to data source Coingecko. Meanwhile, bitcoin, the leading cryptocurrency by market cap, fell 1% to $61,000.

The first presidential debate of 2024, scheduled for Thursday at 9:00 p.m. ET, could offer voters "some surprises, but there's also the possibility of a rerun if it doesn't produce a close race," according to TS Lombard.

"If a shaky Biden underperforms his opponent, pressure from big Democratic donors to abandon his candidacy will surge, especially as Biden has now lagged in fundraising for a second straight month. If Trump veers off track, the Republican could prevail. "Instead, the responsibility for stabilizing his campaign will shift to Trump's as-yet-unannounced vice presidential pick," Lombard said in a note to clients on Tuesday.

"In both scenarios, the bar (set by the first heated Trump-Biden debate) is low, but the stakes are high," Lombard added. The crypto industry has been lobbying to ensure digital assets are discussed during the televised presidential face-off, and potential comments from both candidates could bring volatility to the market. Crypto traders will be watching the debate closely as Trump has made digital assets a key issue in his presidential campaign by courting industry leaders and more recently stressing the need to mine all remaining U.S. bitcoin. As a result, cryptocurrencies now see Trump as a factor, with Standard Chartered Bank predicting a record rally to $150,000 for bitcoin in the event of a potential Trump victory. Biden, meanwhile, has remained silent on asking federal agencies to explore risks and opportunities, including a possible launch of a central bank digital currency managed by the Federal Reserve. “Ahead of tonight’s first presidential debate, crypto traders will be watching the 11:10 p.m. ET on Friday,” Neil Roarty, an analyst at investment platform Stocklytics, said in an email. "The consensus in the cryptocurrency community seems to be that a Trump victory would be good for the industry. Beyond the verbal support he's given, Bitcoin has generally performed well during times of political and economic uncertainty, and a second Trump presidency would likely see more of both," Roarty added.