As the US presidential election race remains tight, the cryptocurrency market has seen significant volatility. The price of BTC has fallen from near its all-time high within just 96 hours, failing to break through $73,700. This decline reflects investors' growing concerns about the uncertainty surrounding the election, particularly against the backdrop of previous optimistic predictions of a victory for Republican candidate Donald Trump, leading to rapid changes in market dynamics.
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ToggleTrump's support rate has fallen, and the cryptocurrency market has reacted sensitively
A few days ago, Trump's chances of winning, who supports crypto-friendly policies, soared to 67% on the Polymarket prediction market, while Democratic candidate Kamala Harris was at 33%. However, as the election situation has changed, Trump's winning rate has plummeted to below 53%, while Harris' support has risen to over 47%, increasing market instability, and the crypto market has come under further pressure, with the BTC price at one point dropping to $67,600.
As of Sunday morning in the US, Trump's winning rate has rebounded to 56%, and the BTC price has also stabilized slightly to $68K, but it is still down more than 2% from the previous day. The instability of market sentiment is also reflected in other cryptocurrencies, with most of them showing declines in the past 24 hours.
Market Commentary: The High Correlation Between BTC and the Election
The synchronous fluctuations in BTC prices and Trump's election prospects have attracted the attention of many market analysts. Analyst Miles Deutscher pointed out: "The high correlation between BTC price movements and Trump's election prospects is truly remarkable." This high degree of correlation has led market investors to ponder the extent to which political events are impacting the cryptocurrency market.
As the election approaches, market uncertainty is expected to continue. The stock market and the crypto market generally dislike instability, and the current election situation is placing both in a state of volatility risk. Investors will continue to closely monitor the election developments in the coming days and respond accordingly when further market fluctuations occur.
