Harris’ growing popularity in the presidential race could be one reason for the recent drop in bitcoin prices, analysts at investment firm Bernstein wrote in a report published Monday.

Since Biden dropped out of the race in favor of his running mate, Harris’ odds of winning the election have risen sharply in recent polls and on cryptocurrency prediction market platform Polymarket.

According to analysts at Bernstein, this is a bearish sign for the cryptocurrency market due to the Democrats’ broad attitudes toward cryptocurrencies and the lack of clarity on Harris’ stance on digital asset regulation.

Po1ymarket is a popular betting platform that allows people to bet on everything from politics, sports, and even a celebrity’s next gaffe. The platform, which runs on the Ethereum extension network Po1ygon, has exploded in popularity during this year’s U.S. election cycle, even becoming one of the hotter topics among politicians in the crypto space.

Republican presidential candidate Trump has publicly supported cryptocurrencies, winning favor among some in the space.

The report, authored by Bernstein analysts Gautam Chhugani, Mahika Sapra and Sanskar Chindalia, noted that a Harris victory in November could hurt cryptocurrency prices, signaling a potentially negative future for digital assets in the United States.

“Our reading of current (crypto) market sentiment is that a Trump win is bullish, while a Harris win is bearish (at least in terms of short-term market reaction),” they wrote in a note on Monday.

Analysts pointed out that Trump's side has been outspoken about its crypto policies and has actively reached out to crypto companies, Bitcoin miners and the wider community. Trump's Republican side has made a strong pitch to crypto voters by promising favorable policies for Bitcoin and crypto innovation, and even hinting at a potential national Bitcoin reserve.

Former President Trump has previously criticized cryptocurrencies, saying he is “not a fan” and calling Bitcoin a “scam.” But this year, as a Republican candidate, Trump has made clear his support for the space, even saying he wants all future Bitcoin to be mined within the United States.

Speaking at the Bitcoin 2024 Nashville conference last month, Trump also reiterated that if re-elected, he would remove Securities and Exchange Commission (SEC) Chairman Gary Gensler, who has been critical of cryptocurrencies.

Harris has made few comments on the crypto space, but Mark Cuban, a billionaire serial entrepreneur who supports cryptocurrencies, said last month that her advisers had asked her "multiple questions" about the industry, suggesting she may be friendlier to cryptocurrencies than the Biden administration.