Cryptocurrency values are tumbling on fears that Kamala Harris could win the White House in November’s U.S. presidential election. The price of Bitcoin began to slide after the Democratic Party’s presidential nominee—who replaced the 81-year-old Joe Biden after he dropped from the race in July—overtook former President Donald J. Trump in online betting markets.
“Our interpretation of current market sentiment is that a Trump win is bullish, and Harris win is bearish (at least in terms of the immediate market reaction),” a recent report from Berstein—a private wealth management firm—reads. Since Harris secured the Democratic Party’s nomination on August 4, Bitcoin’s value has slid 3 percent.
The driving factor behind the cryptocurrency price slide has been the perception that a win by former President Trump would be a boon to crypto markets. While speaking at The Bitcoin Conference in late July, Trump announced his plan to create a national Bitcoin reserve should he be returned to office in November.
“If we don’t do it, China and others are going to be doing it,” he said, adding: “This [Bitcoin] is the steel industry of 100 years ago.”
Meanwhile, market analysts see a potential Harris government as overly hostile to cryptocurrencies. Under the current Biden-Harris regime, Securities and Exchange Commission (SEC) chairman Gary Gensler has aggressively attempted to regulate Bitcoin and other crypto tokens.
Under Genlser’s leadership, the agency has acknowledged that some see its actions as anti-innovation. However, the SEC insists it has proper legal jurisdiction to regulate cryptocurrencies as a traded security.
While the value of some cryptocurrencies appears to have begun a recovery, Bitcoin has yet to recover to its all-time high of $73,700 in March.