“Markets hate uncertainty” is an old adage on Wall Street, and right now, it’s ringing true. Bitcoin, a widely recognized barometer of market sentiment, has pulled back below $68,000, shedding gains from its previous rally toward its all-time high. This drop comes as U.S. election odds have shifted, with increased uncertainty around the presidential outcome impacting the crypto market’s recent bullish trend.
Just days ago, Bitcoin was approaching its peak of $73,700, buoyed by strong momentum and optimism among supporters of crypto-friendly GOP presidential candidate Donald Trump. Trump’s chances of victory in betting markets had risen sharply, reaching nearly 67% on platforms like Polymarket. This optimism for a favorable regulatory future under Trump seemed to bolster Bitcoin’s price.
However, the race’s dynamics have shifted dramatically since then, creating a ripple effect across the cryptocurrency market. As Trump’s odds began to dip—dropping as low as 53%—so did Bitcoin, which tumbled to a low of $67,600. At present, Bitcoin is trading around $68,300, down more than 2% over the past 24 hours. The broader crypto market, as reflected by the CoinDesk 20 Index, has also felt the impact, with significant declines in tokens like Cardano (ADA) and Avalanche (AVAX), both of which are down nearly 6%.
As election day nears, Bitcoin’s correlation with Trump’s chances underscores a deeper connection between crypto and politics. “It’s crazy how correlated Bitcoin price action is to Trump’s election odds,” noted analyst Miles Deutscher. Bitcoin’s volatility, often influenced by investor sentiment and political outlooks, highlights the coin’s unique position as both a hedge and a risk asset in times of uncertainty.
