Bitcoin price today: drops to $68k as election uncertainty builds

Bitcoin fell on Tuesday, extending recent declines as anticipation of a tightly contested presidential election saw traders remain largely wary of speculative assets such as cryptocurrencies.

The world’s biggest cryptocurrency had come within spitting distance of a record high last week, before sharply pulling back as traders grew more uncertain over the upcoming election. 

Losses in broader risk-driven markets, especially stocks, also showed that sentiment remained weak, with a Federal Reserve meeting later this week also coming into focus.

Bitcoin fell 1.2% to $68,345.5 by 00:27 ET (05:27 GMT).  Bitcoin skittish with Trump, Harris set for tight race 

Initial gains in Bitcoin were driven by increased speculation that Donald Trump would beat Kamala Harris in the upcoming elections.

But recent polls and prediction markets showed Trump’s lead had largely evaporated heading into the elections, with voting set to begin later on Tuesday.

Trump had promised crypto-friendly policies, with increased bets on a Trump victory driving sharp gains across crypto markets last week. Harris has also pledged to a crypto regulatory framework, although both candidates have given few actual details on their plans for crypto.

Online prediction market Polymarket showed Trump’s odds at 59.1%, while Harris’ odds were at 40.9%. An Investing.com poll showed 78% of users expect a Trump victory.  Crypto price today: altcoins mixed, Fed in focus 

Broader crypto prices traded in a flat-to-low range on Tuesday, although most altcoins were nursing recent losses in tandem with Bitcoin.

World no.2 crypto Ether fell 1.8% to $2,428.50.

XRP and ADA rose slightly, while SOL and MATIC drifted lower. Among meme tokens, DOGE outperformed, surging 9.1%. 

Focus this week was also on a Federal Reserve meeting on Thursday, where the central bank is widely expected to cut interest rates by 25 basis points . 

Focus will also be squarely on signals from Fed Chair Jerome Powell on the Fed’s plans to cut rates further, especially as recent data showed U.S. inflation remained sticky.

But nonfarm payrolls data from Friday showed a sharp cooling in the labor market, a trend that could elicit more rate cuts from the Fed. 

Source: Investing.com