Bitcoin‘s price experienced a modest increase on Monday, rebounding slightly after a turbulent weekend that saw the cryptocurrency face significant losses following a failed attempt to reach record highs.
Market sentiment has been impacted by looming concerns over a closely contested presidential election, alongside a growing skepticism toward speculative assets ahead of a key Federal Reserve meeting this week.
As of 00:30 ET (05:30 GMT), Bitcoin rose by 0.6% to $69,018.90.
Election Dynamics Affecting Bitcoin Prices
Recent polling indicates a tight race between Donald Trump and Kamala Harris, with Election Day set for Tuesday. The outcome is likely to hinge on seven pivotal battleground states.
Crypto markets have generally viewed Trump more favorably due to his pro-cryptocurrency rhetoric during the campaign. Conversely, while Harris has committed to establishing a regulatory framework for crypto, her specific stance on the industry remains vague.
In recent weeks, prediction markets had leaned toward a Trump victory; however, this sentiment has shifted, with Harris gaining traction. Online prediction platform Polymarket now shows Harris’s odds at 44%, a notable rise from 35% last week, while Trump’s odds have decreased to 56% from 66%.
This shift in expectations has contributed to Bitcoin’s recent declines. The cryptocurrency had surged to $73,600 last week, approaching the record high of $69,000 set in March.
Broader Crypto Market Remains Subdued Amid Fed Speculation
The broader cryptocurrency market also reflected a cautious outlook, with investors awaiting developments from the Federal Reserve later this week.
Ether, the second-largest cryptocurrency, gained 1% to $2,465.40 but is also recovering from a steep drop over the weekend. Other altcoins, including XRP and SOL, remained unchanged, while ADA and MATIC fell approximately 3% each. Among meme coins, Dogecoin (DOGE) saw a slight decline of 0.3%.
Market analysts anticipate that the Fed will likely implement a 25 basis point interest rate cut—less aggressive than the 50 basis point reduction observed in September. Investors are keenly watching for any signals regarding future rate cuts, particularly in light of persistent inflation data and a cooling labor market.
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