Bitcoin Price Decline Amid Election Uncertainty

Investing.com — Bitcoin’s price fell on Tuesday, retreating from recent three-month highs as broader risk aversion—stemming from a tight U.S. presidential election—spilled over into cryptocurrency markets.

While speculation about a Donald Trump victory had initially boosted crypto prices, recent polls indicate a close race between Trump and Vice President Kamala Harris, dampening risk appetite. Broader risk-driven assets retreated, affecting sentiment towards crypto.

Strength in the dollar also pressured crypto prices, while safe-haven demand led to gold hitting record highs.

Bitcoin fell 2.4% to $67,412.5 by 00:49 ET (04:49 GMT). The token had risen to $69,000 but failed to breach $70,000, which was anticipated to signal a bullish trend for the token.

Election Uncertainty Weighs on Bitcoin

The world’s largest cryptocurrency pulled back from recent highs due to increasing uncertainty over the U.S. elections, with just about two weeks left until the ballot.

Improving odds for Trump had driven crypto gains in the past week, given that the Republican candidate has maintained a mostly pro-crypto stance. Encouraging comments from Harris regarding potential crypto regulation also supported sentiment.

However, analysts now view the 2024 race as too close to call, which sparked broader uncertainty in risk-driven markets, pushing traders towards safer options like gold and the dollar.

Prediction markets still primarily favor a Trump victory, with Polymarket showing a 63.7% chance for Trump versus 36.4% for Harris.

Rate Uncertainty Pressures Crypto Prices

Bitcoin and other risk-driven assets faced pressure from increasing beliefs that the Federal Reserve will cut interest rates at a slower rate in the coming months.

This speculation placed the dollar at near three-month highs and bolstered Treasury yields, which in turn pressured speculative, risk-driven assets. Traders are also pricing in a higher terminal rate for the Fed.

Crypto Prices Today: Altcoins Track Bitcoin Losses

Broader crypto markets also declined, reflecting Bitcoin's retreat. The world’s second-largest cryptocurrency, Ether, fell 3.5% to $2,642.39.
SOL, ADA, and MATIC dropped between 1.5% and 3%, while XRP lost 0.9%. Among meme tokens, DOGE decreased by 1.2%.