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The US Debate and the Falling Bitcoin: How Crypto Stocks Are Reacting

Bits.media / 30.06.2024 / 15:47
The US Debate and the Falling Bitcoin: How Crypto Stocks Are Reacting
While bitcoin continues to trade around $60,000, the first televised debate between presidential candidates took place in the United States. The events as a whole are epoch-making. And how did the shares of large crypto companies react to this, most of which are based in the USA?

Biden vs Trump

On the night of Friday, June 28, 2024, the first televised debate took place between incumbent President Joseph Biden and the previous owner of the Oval Office, Donald Trump. 

It's too early to say who will win in November, but the first round of verbal battles remained with Trump, who promises to help participants in the crypto market. According to the results of voting on CNN, the advantage of the former president over the current one expressed in a ratio of 67% versus 33%.

Bitcoin reacted poorly to the results, declining by 2.12% on Friday. And what reaction did the securities of companies that hold, mine or accept bitcoin as a means of payment demonstrate? Let's look at the top 10 such organizations - arranged by the size of the market capitalization.

Phoenix Group (PHX: ADX)

Phoenix Group, a mining company from the United Arab Emirates, opens the top ten. Its market capitalization is now $2.86 billion. The shares have been showing negative dynamics for the last month. Since the highs of May 27, securities have declined by more than 13%. The Arab miner turned out to be indifferent to the debate in the United States. At the auction on Friday, June 28, the shares rose by 0.58%.


Source: tradingview.com   

CleanSpark (NASDAQ: CLSK)

In ninth place is the American mining company CleanSpark, which is trying to show its concern for the environment. The market capitalization at the end of June was $3.63 billion. For more than four months now, the stock has been in a wide range between $14.18 and $24.72. Bears have been dominating for the last ten days, which is why securities have fallen by more than 22%. The debate that took place on Friday night did not add to the positive. Shares lost 0.62% in price after the verbal fight between Trump and Biden.


Source: tradingview.com   

Galaxy Digital Holdings (TSX: GLXY)

Galaxy Digital Holdings holds the eighth place. The company's capitalization = $4.23 billion. This is the first non-completely clean miner in the top. The company's activities cover asset management, consulting, and trading. In June, the company's shares had a swing. The price rose and fell. However, the general trend since mid–April has been an uptrend and an increase of more than 43%. But the debates of the American presidential candidates caused Galaxy Digital investors to be pessimistic. Otherwise, how can we explain the 5.56% drop in shares?


Source: tradingview.com   

Marathon Digital Holdings (NASDAQ: MARA)

The American miner Marathon Digital Holdings operates on three continents at once and ranks seventh. The market capitalization of this company is $5.61 billion. Recently, the growth in the value of MARA shares has stalled a bit. But if we analyze the situation since mid–April, the trend is clearly upward - an increase of more than 40%. The debate had a moderately positive impact on Marathon Digital's stock. On Friday, April 28, the growth was 0.97%.


Source: tradingview.com   

MicroStrategy (NASDAQ: MSTR)

MicroStrategy, one of the largest bitcoin holders, is in sixth place. The company's market capitalization is $24.43 billion. Since the end of May 2024, the shares have been adjusted. By the end of June, they had lost more than 20% of their value. Biden and Trump only added fuel to the fire. On Friday, June 28, MSTR shares fell by 9.7% at once. There has not been such a drawdown since April 30, when MicroStrategy lost more than 17.5% in a day.


Source: tradingview.com   

Grayscale Bitcoin Trust (NYSE: GBTC)

The first in the top 5 is the spot bitcoin ETF Grayscale Bitcoin Trust. In the second half of June, cryptocurrency exchange-traded funds had a period when the outflow of funds was observed for a whole week. However, later this series was interrupted. But this does not apply to GBTC. The outflow of funds is almost constant here, at least in recent months. Since March, GBTC has been sideways between $65.61 and $51.83. But specifically, June is not going well for the shares (units) of the fund. The losses amount to more than 11%. So the Grayscale foundation reacted to the candidate debate by falling by 2.35%.


A source: tradingview.com   

Block (NYSE: SQ)

In fourth place is a fintech company focused on payments - Block (formerly Square) with a market capitalization of $39.79 billion. She also conducts operations in cryptocurrency. Which, by the way, were checked by the prosecutor's office in May on suspicion helping terrorists. The shares have generally been in a downward trend since March, having lost about 30%. Only in the last ten days the situation has changed somewhat, and Block securities have grown by 6%. After the first American debate this year, the SQ ticker gained 1.74%.


Source: tradingview.com   

Coinbase (NASDAQ: COIN)

The troika is opened by one of the largest crypto exchanges Coinbase. The capitalization of this American company is $54.57 billion. Recently, the exchange has been seen in court showdowns with regulators. Perhaps this is the reason for the 15% drop in the last 20 days. The debate for Coinbase was a matter of routine: by the end of Friday, the shares fell by 0.79%.


Source: tradingview.com   

PayPal (NASDAQ: PYPL)

The second place is taken by the PayPal payment system. The company provides services for transactions with cryptocurrencies, and it also has its own stablecoin – PayPal USD (PYUSD). Capitalization is $60.7 billion. Stocks haven't been feeling the best lately. Since June 7, they have fallen by 15%. The debate between the US presidential candidates did not have much impact on the dynamics. On Friday, June 28, PayPal shares declined by 0.58%.


Source: tradingview.com   

Tesla (NASDAQ: TSLA)

At the head of the top is the American giant Tesla with a capitalization of $631.07 billion. This company is known not only for the production of electric cars, but also for investments in bitcoin. After a prolonged correction that began in July 2023, Tesla shares finally began to grow. Since April, they have added 42%, 18% of which occurred in the second half of June. The debate had a modest impact on the dynamics: stocks rose only 0.23% on Friday.


Source: tradingview.com

Conclusion

Bitcoin, which has been falling lately, has dragged down the shares of crypto companies, which for the most part were either sideways or falling. The only thing that stands out qualitatively here is the operator of the Galaxy Digital bitcoin fund, which has been growing since April. As for the debates, they caused a mostly neutral-negative dynamic. Again, Galaxy Digital's papers distinguished themselves, which collapsed by almost 10% after the Trump-Biden debate. 

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