Trump's odds dip 4.5% before election results, Bitcoin and altcoins pause
Bitcoin dipped by 6.5% to around $69,200
Bitcoin’s rally took a turn as its price slipped below the $70,000 mark, a significant correction that coincides with shifts in former President Donald Trump’s odds in the U.S. presidential race.
This drop reflects broader market unease, with major altcoins experiencing sharper declines amid uncertainty about how potential election outcomes could affect the cryptocurrency sector, Сoingape informs.
Bitcoin's reaction
Bitcoin, which recently approached record highs near $73,000, dipped by 6.5% to around $69,200, marking a notable setback in what had been a strong rally.
The correction follows Polymarket reports indicating a decrease in Trump’s chances of winning against Vice President Kamala Harris, leading some investors to reassess the market. Trump’s campaign has generally been perceived as pro-crypto, and his initial lead in polling had supported optimism in the sector. With Trump’s advantage now wavering, cryptocurrency markets are adjusting to a potentially different regulatory environment under a Harris-led administration.
Altcoin reaction
This shift in sentiment was especially evident in altcoin markets. Ethereum, Solana, and Ripple each recorded declines of 8% or more, demonstrating the high sensitivity of these assets to broader market factors and political developments. Analysts attribute this volatility to a trend where investors pull back on riskier assets, such as altcoins, when macroeconomic and geopolitical uncertainties arise.
Market expert Checkmate noted that price adjustments in the days leading up to important events such as the US election are not unusual. “Bitcoin speculators are getting into credit futures positions ahead of the US election,” he commented.
Loading...
Adding to Bitcoin’s correction, the cryptocurrency’s Fear and Greed Index hit “extreme greed,” signaling overheated market sentiment. Such high levels of speculative interest are often followed by a price pullback, as witnessed in Bitcoin’s recent retreat. This led to over $88 million in liquidated futures positions as bullish traders saw their positions close automatically. Meanwhile, open interest in Bitcoin futures also saw a sharp drop, pointing to a cooling in market enthusiasm after a robust rally.
As the U.S. election approaches, Bitcoin and other cryptocurrencies may experience continued volatility. If Trump’s odds stabilize or rebound, a potential recovery in cryptocurrency markets could follow. Conversely, a continued decline in his polling numbers might lead to additional selling pressure, especially for altcoins, as traders adjust their portfolios in anticipation of potential regulatory shifts.
For now, market participants are closely watching both the political landscape and upcoming economic indicators, with the cryptocurrency market poised for further fluctuations leading up to Election Day on November 5.
Recall, we have already written that with the U.S. presidential election just a few days away, the situation is heating up. The flagship cryptocurrency has fallen more than 6.5% from its recent highs, dropping from $73,600 to around $69,200 on Nov. 1.
