As the U.S. presidential election approaches, Bitcoin’s price has dipped below $68,000, reflecting growing uncertainty in the political landscape. Betting markets now indicate a near 50/50 race for the presidency, contrasting sharply with just days ago when former President Donald Trump appeared to have a clear advantage.
Just 96 hours prior, Bitcoin (BTC) was on the verge of breaking its all-time high of $73,700, buoyed by rising momentum for Trump, a candidate known for his pro-crypto stance. At that time, Trump’s chances of winning on the betting platform Polymarket had surged to 67%, while his opponent, Vice President Kamala Harris, was at 33%.
However, as Trump’s odds have declined—falling to below 53% with Harris gaining ground—the price of Bitcoin has also suffered. At one point overnight, Bitcoin dropped to as low as $67,600. As of Sunday morning, during U.S. trading hours, both Trump and Bitcoin have seen slight recoveries; Trump is now at 56%, and Bitcoin is trading around $68,300, reflecting a more than 2% decrease over the past 24 hours.
The broader CoinDesk 20 Index has also experienced a downturn, falling by 2.3% during the same period. Notable underperformers include Cardano (ADA) and Avalanche (AVAX), each down nearly 6%.
Analyst Miles Deutscher commented on the strong correlation between Bitcoin’s price movements and Trump’s election odds, stating: “It’s crazy how correlated Bitcoin price action is to Trump’s election odds.”
The uncertainty surrounding the upcoming election is causing ripples through the cryptocurrency market. Historically, elections have influenced market sentiment significantly; many traders speculate that a Trump victory could lead to a bullish trend for Bitcoin due to his favorable policies toward cryptocurrencies.
Conversely, if Harris were to win, there are concerns that regulatory scrutiny could increase, potentially leading to a bearish impact on Bitcoin’s price.
As the U.S. presidential election draws closer, the interplay between political developments and cryptocurrency prices remains critical.
