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Bitcoin prices fell on Tuesday, retreating from recent three-month highs as broader market uncertainty ahead of the U.S. presidential election dampened risk appetite. Bitcoin dropped 2.4% to $67,412.5, pulling back from a recent peak of $69,000, failing to break through the key $70,000 level that many analysts viewed as a bullish signal.
Election Uncertainty and Bitcoin
While initial speculation of a Donald Trump victory had driven up crypto prices, the race between Trump and Kamala Harris has tightened, leading to increased market uncertainty. This has weighed on risk-driven assets like cryptocurrencies, with traders turning towards safer investments such as gold, which reached record highs, and the U.S. dollar, which also strengthened.
Prediction markets, such as Polymarket, still favor Trump, giving him a 63.7% chance of winning, compared to Harris’ 36.4%. However, the close race has created unease, and the resulting risk aversion has spilled over into the crypto market.
Rate Cut Uncertainty
In addition to election concerns, growing expectations that the Federal Reserve will slow down the pace of interest rate cuts have also pressured Bitcoin and other speculative assets. Rising U.S. Treasury yields and a strong dollar have reduced demand for riskier investments, contributing to the crypto market’s decline.
Altcoins and Meme Tokens Decline
The broader cryptocurrency market mirrored Bitcoin’s losses. Ethereum (Ether), the second-largest cryptocurrency, fell 3.5% to $2,642.39. Other major altcoins such as Solana (SOL), Cardano (ADA), and Polygon (MATIC) saw losses between 1.5% and 3%, while XRP was down 0.9%. Among meme tokens, Dogecoin (DOGE) lost 1.2%.
The combination of election-related volatility and uncertainty over the Fed’s next moves has prompted a cautious approach across crypto markets, leading to the pullback in prices.
