Investing.com– Bitcoin\u2019s price dropped on Tuesday, pulling back from recent three-month highs as broader risk aversion- in anticipation of a tight U.S. presidential election- spilled over into cryptocurrency markets.\u00a0<\/p>\n
While speculation over a Donald Trump victory had initially boosted crypto prices, recent polls pointed to a tight race between Trump and Vice President Kamala Harris, denting risk appetite. Broader risk-driven assets retreated, which in turn weighed on sentiment towards crypto.\u00a0<\/p>\n
Strength in the dollar also pressured crypto prices, while safe haven demand saw gold hit record highs.<\/p>\n
Bitcoin<\/span> fell 1.8% to $66,974.0 by 09:12 ET (13:12 GMT). The token had risen as far as $69,000, but failed to break above $70,000, which was expected to mark a bullish turn for the token.\u00a0<\/p>\n The world\u2019s largest cryptocurrency was pulled off recent highs by increasing uncertainty over the U.S. elections, with just about two weeks left to the ballot.\u00a0<\/p>\n Improving odds for Trump had been a key driver of crypto\u2019s price gains in the past week, especially given that the Republican candidate has maintained a largely pro-crypto stance.\u00a0<\/p>\n Encouraging comments from Harris- on potential crypto regulation- also buoyed sentiment.<\/p>\n But analysts now saw the 2024 race as too close to call, sparking broader uncertainty in risk-driven markets and pushing traders more towards safe havens such as gold and the dollar.\u00a0<\/p>\n Prediction markets still leaned largely towards a Trump victory, with Polymarket showing Trump at a 63.7% chance over Harris\u2019 36.4% chance.\u00a0<\/p>\n Open interest (OI) in Bitcoin futures on the Chicago Mercantile Exchange (CME) has soared to a new all-time high as of Oct. 18, exceeding $12.26 billion. This represents a marked jump of over 36% in the past two weeks and tops the previous record, set in April, by more than 3.5%.<\/p>\n The recent surge in OI represents a notable uptick from the levels seen during the summer, with the current figure being the highest since April 1, when CME’s OI reached $11.84 billion.<\/p>\n This growing activity in CME futures suggests that institutional investors are increasing their positions, likely in anticipation of continued volatility or a potential rise in Bitcoin prices.<\/p>\n Open interest refers to the total number of unsettled futures contracts. A record high in OI indicates a growing number of market participants engaging in Bitcoin futures trading.<\/p>\n Bitcoin and broader risk-driven assets were also pressured by increasing conviction that the Federal Reserve will cut interest rates at a slower pace in the coming months.<\/p>\n This notion put the dollar<\/span> at near three-month highs and boosted Treasury yields, which in turn pressured speculative, risk-driven assets. Traders were also seen pricing in a higher terminal rate for the Fed.\u00a0<\/p>\n Broader crypto markets also retreated, tracking declines in Bitcoin. World no.2 crypto Ether<\/span> fell 2.7% to $2,621.12.<\/p>\n ADA<\/span> and MATIC<\/span> fell between 0.3% and 3%, while XRP<\/span> lost 3.5%.<\/p>\n Among meme tokens, DOGE<\/span> slid 2.8%.<\/p>\n Ambar Warrick contributed to this report.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" [db:\u6458\u8981]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-4860","post","type-post","status-publish","format-standard","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/cryptoopia.com\/wp-json\/wp\/v2\/posts\/4860","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoopia.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoopia.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoopia.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoopia.com\/wp-json\/wp\/v2\/comments?post=4860"}],"version-history":[{"count":0,"href":"https:\/\/cryptoopia.com\/wp-json\/wp\/v2\/posts\/4860\/revisions"}],"wp:attachment":[{"href":"https:\/\/cryptoopia.com\/wp-json\/wp\/v2\/media?parent=4860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoopia.com\/wp-json\/wp\/v2\/categories?post=4860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoopia.com\/wp-json\/wp\/v2\/tags?post=4860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Election uncertainty weighs on Bitcoin<\/h2>\n
Institutional interest in Bitcoin rising, futures data suggests<\/h2>\n
Rate uncertainty pressures crypto prices<\/h2>\n
Crypto price today: altcoins track Bitcoin losses\u00a0<\/h2>\n