With the U.S. presidential election days away, heightened uncertainty surrounding the outcome is sending ripples through the cryptocurrency market.
Bitcoin, which came very close to a new record high just days ago, has dropped 2.76% in the past 24 hours, landing at $70,200.
The decline in crypto prices is stirring market speculation, with many traders pointing to the decreasing odds of a win for GOP candidate Donald Trump, known for his favorable stance toward cryptocurrencies.
Betting odds on Polymarket show Trump’s chances slipping from 67% to 63% over the past two days, while the odds for Democratic candidate Kamala Harris have surged from 33% to 36%.
Traditional markets are also feeling the heat, with Thursday marking a tough day for stocks; the Nasdaq closed down 2.4%, and the S&P 500 fell 1.6%. According to Matt Hougan, CIO of Bitwise, recent missteps by both parties, including controversies in Puerto Rico and garbage disposal issues, have intensified the belief that the election’s outcome remains unpredictable. “This has re-introduced uncertainty,” Hougan said, noting that the electoral indecision may be driving the downturn in the crypto market.
After a week of broad market gains, the crypto market paused as U.S. Bitcoin exchange-traded funds (ETFs) saw robust inflows for the second consecutive day. Wednesday brought in over $893 million in ETF inflows, following Tuesday’s $879 million—a milestone as the first consecutive days with more than $850 million each. This surge brings the total net inflows since the ETFs launched in January to a remarkable $24 billion, according to data from Farside Investors.
