Harris's popularity is increasingly booming, causing panic in the cryptocurrency circle

Analysts at investment firm Bernstein stated in a report released on Monday that the increasing popularity of Harris in the presidential election may be one of the reasons for the recent drop in Bitcoin prices.

Since Biden withdrew from the race and started supporting his running mate, Harris' chances of winning the election have significantly risen in recent opinion polls and on the cryptocurrency prediction market platform Polymarket.

According to analysts at Bernstein, this is a bearish sign for the cryptocurrency market, as Democrats have a broad stance on cryptocurrencies and Harris lacks clarity on her position regarding digital asset regulation.

Polymarket is a popular prediction market platform that allows people to bet on various things such as politics, sports, and even the next slip-up by celebrities. The platform operates on the Ethereum scaling solution Polygon and has gained popularity during this year's U.S. election cycle, becoming a hot topic among politicians in the crypto space.

Republican presidential candidate Trump has openly supported cryptocurrencies, winning favor from some in this field.

A report authored by Bernstein analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia pointed out that Harris' victory in November could harm cryptocurrency prices, signaling a potentially negative future for digital assets in the U.S.

In their report on Monday, they wrote, "Our interpretation of the current (cryptocurrency) market sentiment is that a Trump victory is bullish, while a Harris victory is bearish (at least in terms of short-term market reactions)."

Analysts noted that the Trump camp has been outspoken about its crypto policies and has actively engaged with crypto companies, Bitcoin miners, and a wider audience. The Republican side led by Trump has made strong propaganda to crypto voters by promising favorable policies towards Bitcoin and crypto innovation, even hinting at a potential national Bitcoin reserve.

Former President Trump had previously criticized cryptocurrencies, stating he was "not a fan" and calling Bitcoin a "scam." However, this year as a Republican candidate, Trump explicitly expressed support for this sector, even stating his desire for all future Bitcoins to be mined within the U.S. borders.

Trump reiterated at the Bitcoin 2024 Nashville conference last month that if re-elected, he would replace SEC Chairman Gary Gensler, who has been critical of cryptocurrencies.

Harris has made few comments on the crypto space, but billionaire and serial entrepreneur Mark Cuban, who supports cryptocurrencies, stated last month that her advisors have raised "multiple questions" about the industry, indicating that her attitude towards cryptocurrencies may be more friendly than the Biden administration.