Bitcoin Price Declines Amid Election Speculations
Investing.com – Bitcoin prices continued to decline on Friday as the cryptocurrency market experienced a pullback for the third consecutive day, influenced by a decrease in Donald Trump’s odds in the US presidential elections.
The market sell-off extended beyond Bitcoin, with Ether and various altcoins also seeing significant losses, resulting in an overall market cap decrease of 5.5%.
After reaching its second-highest price this year at $73,600, Bitcoin decreased by over 6.5% in just three days, closing below $69,000 with a 5% reduction in the last 24 hours. Ethereum fell by 4.59%, now priced at $2,521.48, amid a bearish market sentiment.
Other altcoins suffered similarly, with Solana down 4.00% at $168.03, Cardano decreasing 3.01% to $0.3465, and Polygon dipping 1.81% to $0.3189. Even Dogecoin faced a significant drop, plunging 15.13% to $0.0416.
Conversely, XRP experienced a modest 0.35% increase, standing out in an otherwise dismal market.
The crypto market decline correlates with a narrowing gap between Trump and Democratic candidate Vice President Kamala Harris on prediction platforms like PredictIt, Polymarket, and Kalshi, which allow betting on election outcomes.
Harris’ odds increased to nearly 39% from 33%, while Trump’s odds decreased but remained high at 61%, keeping him as the frontrunner. A Trump victory is anticipated to positively impact Bitcoin, while a Harris win could lead to regulatory uncertainties.
Additionally, the drop in Bitcoin's price was exacerbated by profit-taking leading into the weekend, resulting in a broader market pullback that eliminated over $250 million in long positions. Notably, the popular Fear and Greed Index indicated "extreme greed" on Thursday, a sentiment often indicative of market peaks.
The index reflects market emotional fluctuations, implying that while “extreme fear” may signal buying opportunities, “extreme greed” could signal an impending correction.
On another note, Bitcoin futures racked up $88 million in losses, while ether futures lost $44 million, and SOL and DOGE futures each saw around $15 million vanish, according to CoinGlass data.
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