Trump's election odds slipping doesn't bode well for crypto

Former President Donald Trump and Vice President Kamala Harris went toe-to-toe for the first time on the debate stage Wednesday — and while crypto wasn't mentioned, it certainly will be impacted.

As some crypto commentators have noticed, Bitcoin's price has somewhat moved in lockstep with Trump's election odds this summer. Bitcoin's price fell about 2% as Trump got off to a rough start in the debate, but recovered Wednesday as his odds also rebounded from 48% to 50% according to betting site Polymarket.

Travis Kling, founder of Ikigai Asset Management, told Coinage he remains cautiously optimistic about the future of cryptocurrency in the U.S. regardless of who wins the presidential election this year.

Despite Ethereum’s recent struggles and the mixed reception of the ETH ETFs, Kling believes that crypto and Bitcoin continue to hold immense importance, both financially and politically. “For all of our missteps, crypto and Bitcoin are still big,” he said, noting their enduring relevance in global discussions.

Kling emphasized that Bitcoin, valued at over a trillion dollars, remains a central figure in the financial ecosystem, with the rest of the crypto market also commanding significant attention. What’s more, he pointed out that crypto is now a headline political issue in the upcoming U.S. presidential election, a testament to its growing influence. “It’s almost amazing that we’ve screwed up as bad as we have and still are so much in the driver’s seat.”

However, Kling did concede price in the short-term would be juiced by a Trump win. He expressed concern over the potential challenges the crypto space might face under a Harris administration, noting that a Trump victory could lead to more favorable conditions for the industry. While he doesn’t see crypto disappearing under Harris, he anticipates "tougher sledding" if she wins, as opposed to a more open landscape under Trump.

Ultimately, Kling sees the current moment as a pivotal one for crypto’s evolution. Whether stakeholders are fully engaged or quietly quitting, he believes that crypto’s importance offers a significant opportunity for those who stay committed. “We have an enormous opportunity to make the world a much better place,” Kling remarked, underscoring his belief in crypto’s transformative potential—regardless of the election outcome.