Bitcoin Rose from the Losses with Election Tension and Rate Cut Uncertainty

Bitcoin's price climbed a little on Monday, recovering slightly from a weekend plunge. The cryptocurrency faced setbacks partially due to growing caution in the market. This apprehension comes ahead of a tight U.S. presidential election and a Federal Reserve meeting later this week, both of which impact risk sentiment.

 

 

Market sensitivity was heightened as recent polls showed a close race between Donald Trump and Kamala Harris that was expected to be decided in seven key swing states. Trump’s pro-crypto stance has made him the preferred candidate for many in the cryptocurrency market. Harris has advocated for a regulatory framework, though her attitude toward the cryptocurrency remained unclear. Prediction market sentiment used to lean toward Trump's victory. However, Harris gained momentum in the last few days, narrowing Trump’s lead. On the prediction platform Polymarket, Harris’s odds rose to 44% from 35% last week, while Trump’s fell from 66% to 56%. That reversal left Bitcoin with a significant loss this weekend, even after rising to a near-record high of $73,600 last week.

 

 

The broader cryptocurrency market was also suppressed by the upcoming Federal Reserve decision. Ethereum, the second-largest cryptocurrency, once edged up 1% to $2,465.40 after experiencing a weekend dip. Other altcoins showed mixed performance: XRP and SOL were steady, while ADA and MATIC declined about 3%. Among meme coins, DOGE slipped 0.3%.

 

 

Investors were closely watching the Fed meeting as they expected the Fed to cut rates by 25 basis points, following a larger 50-basis-point cut in September. Any signs regarding future rate adjustments would be pivotal, given recent mixed U.S. economic data which showed lingering inflation pressures even as the labor market softened. This mix of political and economic uncertainty continued to shape sentiment in the cryptocurrency market.