Crypto Market Update
The cryptocurrency markets experienced a decline on Wednesday, following a similar trend in U.S. equity markets and amid speculation surrounding the presidential election. Bitcoin (BTC) saw a drop from $65,000 to $63,500 within a two-hour period, marking a 1.7% decrease over the past 24 hours. Other major cryptocurrencies like Ethereum (ETH) and Solana (SOL) also faced losses, although to a lesser extent.
Smaller digital assets were hit harder, leading to a 2.8% decrease in the Coindesk 20 Index (CD20). Ripple’s XRP, Polkadot’s DOT, Cardano’s ADA, and Polygon’s MATIC all experienced declines ranging from 5% to 6%.
These price movements coincided with ongoing struggles in the U.S. stock market, with the Nasdaq 100 and S&P 500 both down by 1% and 0.7%, respectively. The uncertainty surrounding the U.S. presidential election intensified with reports suggesting pressure on President Biden not to seek re-election.
On the prediction market platform Polymarket, the likelihood of Biden dropping out increased to 80%, while Vice President Kamala Harris’s chances of becoming the Democratic nominee rose to 63%. Meanwhile, odds for former President Donald Trump winning the election slightly decreased to 65% following recent events.
The recent rally in cryptocurrency prices was partly driven by investor sentiment towards a potential Trump victory, which could lead to a more crypto-friendly administration. The evolving political landscape continues to influence market dynamics, adding another layer of complexity for investors and traders.