As traders assessed whether better US regulatory conditions and increasing exchange-traded fund inflows would be enough to fuel additional gains, a Bitcoin rally stalled.
As of Tuesday at 7:28 a.m. London time, the digital asset has dropped around 1% to $65,445. The token has risen about 9% in the last five days, outpacing both gold and an index of global markets during that time.
With three weeks until election day, Kamala Harris, the Democratic nominee in a close US presidential contest, promised Monday to back a regulatory framework for cryptocurrency. In the campaign for votes, Republican Donald Trump, the vice president’s opponent, has already embraced the digital asset sector. He is thought to be the more openly pro-crypto candidate.
According to Noelle Acheson, author of the Crypto Is Macro Now newsletter, the current spike in Bitcoin prices “is largely election-driven, initially from Trump’s lead in both prediction markets and polls, and later from semi-supportive statements regarding crypto markets from the Harris campaign.”
Recently, prediction markets have switched, giving Trump a larger chance of winning than Harris. Trump has declared that the United States will become the “crypto capital of the planet”—a reversal of his earlier accusations that the industry was a “scam.”
Due to significant contributions to political action committees, the digital asset sector has emerged as a significant force in the presidential race. Crypto companies are resisting a crackdown by the Securities & Exchange Commission, which is led by Gary Gensler, and are calling for more lenient laws.
According to statistics, a group of 12 spot-Bitcoin ETFs in the US had inflows of $556 million on Monday, the most since early June. Their assets now reach about $62 billion.
According to data published, October was the greatest month of the year seasonally for the original cryptocurrency, with Bitcoin delivering an average 20% increase over the previous ten years.
Sean Farrell, head of digital-asset strategy at Fundstrat Global Advisors LLC, noted in a note that October’s seasonal strength in cryptocurrency markets is generally weighted toward the later part of the month, according to historical data.
