Markets always get nervous when there is uncertainty, as the saying goes on Wall Street. Just a few days ago, Bitcoin (BTC) was on the verge of reaching its all-time high above $73,700. This increase in price may have been influenced by the growing support for Donald Trump, a presidential candidate known for his pro-crypto stance.
However, things have taken a different turn since then. Trump’s chances of winning the election, as predicted by Polymarket, have decreased to below 53%, with his opponent Kamala Harris rising to over 47%. This shift in the political landscape has also had an impact on the price of Bitcoin, which dropped to as low as $67,600. As of now, during the U.S. morning hours on Sunday, both Trump’s odds and the price of Bitcoin have slightly recovered, with Trump at 56% and Bitcoin at $68,300, a decrease of more than 2% in the last 24 hours.
The broader CoinDesk 20 Index has also seen a decline of 2.3% during the same period, with cryptocurrencies like Cardano (ADA) and Avalanche (AVAX) experiencing even larger drops of almost 6%. Analyst Miles Deutscher noted the interesting correlation between Bitcoin’s price movements and Trump’s election odds, highlighting the impact of political events on the crypto market.
While the future remains uncertain, investors are closely watching how both the political landscape and the crypto market will evolve in the coming days. The volatility in both areas serves as a reminder of how interconnected global events can have a significant impact on financial markets, including cryptocurrencies like Bitcoin. As we navigate through these uncertain times, it’s important to stay informed and make well-informed decisions to navigate the fluctuations in the market successfully.