- BTC and stock futures declined after the first 2020 US presidential debate between Republican Donald Trump and Democrat Joe Biden.
- Trump’s comment to actively contest the election results for weeks after the ballots are counted increased the level of uncertainty for market participants.
- Neither of the candidates spoke about Bitcoin though the crypto asset continues to strengthen and set all-time highs.
Bitcoin (BTC) and the global stock futures declined after current US President Donald Trump and Democratic presidential nominee Joe Biden participated in the first 2020 presidential campaign debate in Ohio held last September 29.
After the debate, BTC deleted most of the Tuesday gains, turning 1.19% lower. Futures tied to America’s S&P 500 index also dropped by 0.85% while those linked to London’s FTSE were down by 0.5%.
By 7:00 AM ET (11:00 AM GMT), S&P 500 Futures traded 17 points, or 0.5% lower. The Dow Futures contract also fell 170 points, or 0.6%, while Nasdaq 100 Futures dropped 67 points, or 0.6%. In addition, Asia Pacific markets including Japan’s Nikkei, Australia’s ASX 200, and China’s Shanghai Composite dropped as well.
The drop in the US index futures drifted lower resulting from investors showing concern over the uncertain US presidential elections. Moreover, the drop in global stocks and BTC was prompted by Trump’s comments on the widespread voter fraud and his vows to challenge the election’s outcome.
President Donald Trump said during the first presidential debate:
We might not know the outcome for months…this is not going to end well.
US stock futures slid lower on prospects of what observers like Northman Trader founder Sven Henrich worried “may not be an accepted election result.”
Futures not liking the prospect that there may not be an accepted election result on November 3. pic.twitter.com/hhoYAWrqyd
— Sven Henrich (@NorthmanTrader) September 30, 2020
To add on, neither of the two candidates spoke anything considered to be meaningful about Bitcoin. The Bitcoin strategist at Kraken tweeted that voting will be a waste of time as results cannot be verified.
He elaborated by saying that:
Voting is a waste of time because you can’t independently verify the results.
You have to trust third parties.
With #bitcoin you can verify.
Don’t vote, acquire #bitcoin.
— PierreRochard.com (@pierre_rochard) September 30, 2020
Since the last presidential debate in 2016, the BTC price has exponentially increased. The price of the cryptocurrency was between $600 to $780 and at the time of writing, BTC price sits at $10.8k.
Between December 2017 and January 2018, Bitcoin reached highs that nearly broke the $20,000 mark. This is still the BTC all-time highest value. Yet, analysts predict that Bitcoin would reach over $100,000 before 2024, due to the success of the previous halving event.