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Cryptocurrency Market Update Amid U.S. Election Speculation
Stay informed on the latest developments in the cryptocurrency market amidst the speculation surrounding the U.S. election. Explore how the election may impact digital currencies and investment trends.
Cryptocurrency Market Update
The cryptocurrency markets experienced a downturn on Wednesday, mirroring a decline in U.S. equity prices and amid speculation surrounding the ongoing presidential election.
Bitcoin (BTC) saw a rapid drop from $65,000 to $63,500 within a two-hour span during mid-morning trading in the U.S., marking a 1.7% decrease over the past 24 hours. Ether (ETH) and Solana’s token (SOL) also faced losses, albeit less severe, each down by over 1%.
In the altcoin space, smaller cryptocurrencies recorded more significant declines, resulting in a 2.8% drop in the Coindesk 20 Index (CD20). Notable decreases included 5%-6% dips for Ripple’s XRP (XRP), Polkadot’s DOT (DOT), Cardano’s ADA, and Polygon’s MATIC.
Simultaneously, U.S. equities struggled to recover from recent substantial losses, with the Nasdaq 100 declining by 1% and the S&P 500 dropping by 0.7%.
Uncertainty surrounding the U.S. presidential election intensified following reports of mounting pressure on President Biden not to seek re-election. The crypto prediction market Polymarket now indicates an 80% probability of Biden not running, up from 40% the previous day. Odds for Vice President Kamala Harris becoming the Democratic nominee surged to 63% from 15% in the same timeframe.
Conversely, GOP nominee Donald Trump’s likelihood of winning slightly decreased on Polymarket to 65%, down from a peak of 70% after surviving an assassination attempt over the weekend.
The recent rally in crypto prices was partly driven by investors anticipating a Trump victory and a potentially more crypto-friendly U.S. administration.