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Bitcoin prices continued their downward trend on Wednesday, reflecting a broader week of losses. The decline is largely attributed to a weak risk appetite among traders, driven by growing uncertainty surrounding the U.S. political landscape.
In the past 24 hours, Bitcoin fell by 1.7%, bringing its price down to $65,793.50 by 01:56 ET (05:56 GMT). After briefly rebounding to $69,000 over the weekend, the cryptocurrency is now experiencing a steady reversal.
Political Uncertainty Pressures Bitcoin
The recent political upheaval in the U.S. has added to Bitcoin’s struggles. President Joe Biden’s unexpected decision to withdraw from the reelection race and endorse Vice President Kamala Harris has intensified uncertainty. Harris, gaining rapid support within the Democratic Party, is now seen as the likely presidential nominee.
This development sets up a potential face-off with Republican candidate Donald Trump, who had been leading in polls before Harris’ endorsement. Trump’s historically favorable stance on cryptocurrency, coupled with his scheduled appearance at the Bitcoin Conference in Nashville this Saturday, had previously bolstered crypto sentiment. However, recent polling shows Harris leading Trump, which may have dampened the positive outlook for Bitcoin.
Spot Ether ETFs Launch with Mixed Impact
In a related development, the launch of spot exchange-traded funds (ETFs) tracking Ether saw strong trading volumes but did little to boost sentiment in the sector. On Tuesday, six ETFs linked directly to Ether began trading in U.S. markets, with volumes surpassing $1 billion on their first day. Despite this strong debut, the figure pales in comparison to the $4.6 billion traded during the launch of spot Bitcoin ETFs earlier this year.
Ether’s price also saw a decline on Tuesday and remained relatively flat at around $3,440.97 on Wednesday. While the introduction of these spot Ether ETFs is anticipated to attract more institutional interest, the actual demand for the product remains uncertain. Similarly, trading volumes for spot Bitcoin ETFs have significantly decreased since their initial release earlier this year.
Overall, the crypto market is grappling with mixed signals, with political uncertainty and fluctuating sentiment impacting Bitcoin and Ether alike.
