Today's price of bitcoin falls to $68k as election anxiety increases

Bitcoin declined on Tuesday, continuing its recent downward trend as anticipation of a close presidential race left traders cautious about speculative assets like cryptocurrencies.

The largest cryptocurrency globally nearly reached a record high last week but saw a sharp pullback as market sentiment grew cautious ahead of the impending election.

Broader markets sensitive to risk, especially stocks, also reflected weak sentiment, with an upcoming Federal Reserve meeting later in the week adding to the cautious outlook.

By 00:27 ET (05:27 GMT), Bitcoin had fallen 1.2% to $68,345.5.

Bitcoin Volatile Amid Tight Election Race Between Trump and Harris
Earlier gains in Bitcoin had been fueled by speculation that Donald Trump might win against Kamala Harris in the approaching election.

However, recent polls and betting markets showed that Trump’s lead had narrowed significantly, with voting set to begin later on Tuesday.

Trump has promoted crypto-friendly policies, sparking sharp gains across crypto markets last week on hopes of a potential victory. Harris has also pledged to establish a regulatory framework for cryptocurrencies, although specific details on both candidates' plans remain sparse.

The online prediction platform Polymarket placed Trump’s chances at 59.1%, while Harris stood at 40.9%. Additionally, a poll from Investing.com indicated that 78% of users expected a Trump victory.

Crypto Market Update: Altcoins Mixed, Fed Meeting in Focus
Broader crypto markets showed muted to slight declines on Tuesday, with most altcoins mirroring Bitcoin's losses.

Ether, the second-largest cryptocurrency, dropped 1.8% to $2,428.50.

Meanwhile, XRP and ADA saw modest gains, while SOL and MATIC edged lower. Among meme tokens, DOGE outperformed, surging 9.1%.

The Federal Reserve's Thursday meeting also drew attention, with expectations of a 25-basis-point rate cut. Investors are keenly watching for signals from Fed Chair Jerome Powell on further rate cuts, particularly as recent data shows persistent inflation.

However, nonfarm payroll data released Friday indicated a notable slowdown in the labor market, which could prompt additional rate cuts from the Fed.

 

 

 

 

 

 

 

 

Paraphrasing text from "Investing" all rights reserved by the original author.