Key Points:
- The recent debate hurt Biden’s prospects while Trump gained, but Bitcoin and altcoins still fell.
- Mt. Gox estate sales and new token distributions are dragging the crypto market down.
- Altcoin market capitalization has dropped 22% in Q2, with GameFi tokens hit hardest.
Despite the presidential debate impact on crypto, Bitcoin and altcoins are down. Mt. Gox sales and token unlocks are key factors rather than the former.
Does Presidential Debate Impact On Crypto Price Today?
The recent presidential debate went poorly for President Joe Biden, improving prospects for crypto-embracing opponent Donald Trump. Despite this political shift, Bitcoin is trading lower than before the debate. Smaller altcoins have seen even more significant downturns.
Does the Presidential debate impact on crypto market at this time?
According to BBG, other catalysts that traders attribute to are selling from the estate of bankrupt exchange Mt. Gox and the distribution of additional tokens by smaller digital currencies, which drag the crypto market downward.
Spencer Hallarn, global head of OTC trading at GSR, referred to those classically fundamental laws ruling supply and demand, saying that the new supply from Mt. Gox, coupled with token unlocks, weighed heavily on prices.
Bitcoin fell for a second day and was close to more than one-month lows, trading at $59,623, down 3.7%. According to Shiliang Tang, president of Arbelos Markets, the market faces a supply overhang with low liquidity and volatility.
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Market trends and supply overhang
The combined supply overhang effect from the German government, Silk Road, and Mt. Gox, together with venture coins persistently unlocking every month, resulted in insufficient new capital inflows.
Excluding Ether and stablecoins, the market capitalization of altcoins has dramatically fallen since Bitcoin topped out in March. In a list of 138 tokens tracked by TokenUnlocks, 120 have unlocks this year, with a combined market value of about $58 billion.
A DeFi analyst with K33, David Zimmerman, said it had almost been a clean sweep down across almost all altcoin sectors, with GameFi tokens taking the most significant hit. The total crypto market capitalization, excluding Bitcoin and Ether, fell nearly 22% in Q2 despite a spike in new token launches.
