Bitcoin Drops Below $68K as Crypto Markets React to Election Uncertainty

The U.S. presidential election has shifted from a predicted Trump victory to a near 50/50 race, according to betting markets, creating heightened uncertainty that appears to be affecting crypto prices. "Markets hate uncertainty," goes an old Wall Street saying.

Just days ago, bitcoin (BTC) was trading close to its all-time high of $73,700, likely boosted by momentum around GOP candidate Donald Trump, who has shown support for crypto. At the time, betting platform Polymarket placed Trump’s chances of winning at 67%, with opponent Kamala Harris at 33%.

Since then, however, Trump’s odds have dropped, as has bitcoin’s price. Trump’s chances dipped to below 53% overnight, while bitcoin sank to $67,600. By Sunday morning, Trump’s odds had slightly rebounded to 56%, and bitcoin rose back to $68,300, still down over 2% in the last 24 hours.

The broader crypto market has also felt the effects. The CoinDesk 20 Index is down 2.3%, with Cardano (ADA) and Avalanche (AVAX) falling nearly 6% each.

"It's crazy how correlated bitcoin price action is to Trump's election odds," commented analyst Miles Deutscher on X.