Bitcoin experienced a decline on Wednesday, extending earlier losses as diminished risk appetite, driven by uncertainty surrounding the U.S. political landscape, continued to weigh on the cryptocurrency market.
The recent introduction of spot exchange-traded funds (ETFs) linked to Ether failed to boost sector sentiment. Ether prices fell on Tuesday and remained flat on Wednesday.
In the last 24 hours, Bitcoin dropped 1.7%, trading at $65,793.50 by 01:56 ET (05:56 GMT). After a weekend peak of $69,000, the cryptocurrency has been on a downward trajectory.
Political Uncertainty Pressures Bitcoin
Bitcoin’s struggles are linked to escalating uncertainty over the U.S. presidential race. The situation intensified when President Joe Biden ended his reelection campaign and endorsed Vice President Kamala Harris.
Harris, gaining swift support within the Democratic Party, is now anticipated to be the party’s presidential nominee. She is expected to face off against Republican candidate Donald Trump, who had been leading in polls prior to Harris’ endorsement.
Trump’s favorable stance towards cryptocurrencies had previously driven some gains in the market. He is scheduled to speak at the Bitcoin Conference in Nashville this Saturday. However, recent polling by Reuters/Ipsos shows Harris ahead of Trump, which may further impact crypto market sentiment.
Ether ETFs Fail to Influence Market Prices
On Tuesday, six ETFs directly linked to Ether’s price commenced trading in U.S. markets, achieving over $1 billion in trading volume on their first day. Despite this, the figure falls short of the $4.6 billion seen during the debut of spot Bitcoin ETFs earlier this year.
Ether’s price declined on Tuesday and remained stagnant at approximately $3,440.97 on Wednesday. The impact of the spot Ether ETFs on institutional investment remains uncertain, and trading volumes for spot Bitcoin ETFs have also tapered off since their introduction.
Altcoins Remain Stable Amid Weak Market Sentiment
In broader cryptocurrency markets, major altcoins exhibited minimal movement on Wednesday, reflecting a continued lack of appetite for risk-driven assets. SOL and XRP traded within a narrow range, while ADA fell by 2.6%.
Among meme tokens, DOGE decreased by 1.9%, and SHIB experienced a 0.7% drop.
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