The price of bitcoin fell 2.6% from around $57,700 to $56,100 in the hours following Tuesday's televised presidential candidate debate before posting a slight recovery to a current price of around $56,400. "The U.S. presidential debate was a sell-the-news event, with Trump's performance underwhelming in comparison to his previous debate against Biden, and the consensus view seems to be that it was a loss for him," Bitfinex analysts said.

Following the debate, risk-off trading behavior intensified, with analysts highlighting that a Trump victory is generally viewed favorable for risk assets, including crypto. "His involvement in crypto is now clear, given recent news about his DeFi project and campaign promises he has made to remove U.S. Securities Exchange Commission (SEC) chair Gary Gensler from office," the analysts told The Block.

QCP Capital analysts also anticipate rising risk-off sentiment as uncertainty looms over the outcome of the Nov. 5 election, with no clear favorite emerging. "The absence of a clear frontrunner in this election, coupled with the murky policy stances from both parties, heightens the possibility of a risk-off move in risk assets as we approach election day," QCP Capital analysts said.

Source: https://www.theblock.co/post/315808/presidential-debate-risk-off-crypto

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