Analysis TrumpAssociated Cryptocurrencies MAGA STRUMP and TRUMP Decline Following Debate Discover the Reasons
Following Joe Biden’s lackluster debate performance against Donald Trump, Trump-themed tokens experienced a decline in value on Friday. Despite Biden’s fading chances of re-election, MAGA (TRUMP) token, with a market cap exceeding $370 million, dropped by 1.5%. Similarly, MAGA Hat (MAGA) token saw a retreat of over 30%, while Super Trump (STRUMP) fell by 18%.
In the stock market, the Trump Media & Technology (DJT) token only rose by 3%, erasing most of its pre-market session gains. This shift occurred following calls from prominent Democrats and vocal Biden supporters for him to step aside for a fresh candidate. Paul Krugman, writing for the New York Times, reluctantly joined the chorus, emphasizing the need for Biden to voluntarily exit the race. Thomas Friedman echoed similar sentiments, suggesting that Biden and his team’s lackluster debate performance may signal the need for him to step down.
The retreat of MAGA, STRUMP, and TRUMP tokens can be attributed to the increasing likelihood of Biden withdrawing from the race before the Democratic Convention. This potential development would position Trump against a younger Democratic candidate with a better chance of winning, such as Kamala Harris, Gavin Newsom, or even Michele Obama.
These tokens had performed well throughout the year due to Trump’s lead over Biden, which is expected to widen post-debate, potentially prompting Biden’s withdrawal. Additionally, the crypto industry’s continued pressure has impacted these tokens, with Bitcoin struggling to recover at $62,000 and indicating a potential downside in the near term with its double-top pattern.
