Bitcoin Market Update

Date: Tuesday
Source: Investing.com

Bitcoin fell on Tuesday, extending recent declines as anticipation of a tightly contested presidential election made traders wary of speculative assets like cryptocurrencies.

The world’s biggest cryptocurrency had approached a record high last week before a sharp pullback, as uncertainty grew over the upcoming election.

Losses in broader risk-driven markets, especially stocks, indicated weak sentiment, adding to the focus on a Federal Reserve meeting later this week.

As of 00:27 ET (05:27 GMT), Bitcoin had decreased by 1.2%, trading at $68,345.5.

Bitcoin Skittish with Trump, Harris Set for Tight Race

Initial gains in Bitcoin stemmed from speculation that Donald Trump would beat Kamala Harris in the elections. However, recent polls and prediction markets suggested Trump’s lead had diminished ahead of voting, which begins later on Tuesday.

Trump had promised crypto-friendly policies, driving sharp gains across crypto markets last week. Harris also proposed a crypto regulatory framework, but provided minimal details on their plans for cryptocurrencies.

Data from prediction market Polymarket indicated Trump’s odds at 59.1%, while Harris stood at 40.9%. An Investing.com poll showed that 78% of users expected a Trump victory.

Crypto Prices Today: Altcoins Mixed, Fed in Focus

Broader crypto prices were largely flat on Tuesday, with most altcoins nursing recent losses alongside Bitcoin. World no. 2 crypto Ether fell by 1.8%, trading at $2,428.50.

XRP and ADA saw slight increases, while SOL and MATIC dipped lower. Among meme tokens, DOGE outperformed, surging 9.1%.

Attention will also be on the Federal Reserve meeting on Thursday, where a 25 basis point interest rate cut is widely anticipated. The focus will be on signals from Fed Chair Jerome Powell regarding further rate cuts, especially after recent data highlighted persistent U.S. inflation. The Friday nonfarm payrolls data showed a significant cooling in the labor market, a trend that could prompt more rate cuts from the Fed.