Bitcoin price drops to $67k due to election uncertainty and Federal Reserve rate cut predictions

From Investing.com

October 22, 2024 01:10:50 AM:

Bitcoin’s price fell from recent highs due to election uncertainty, with polls showing a tight race between Trump and Harris. Dollar strength and safe haven demand pushed prices lower, with Bitcoin dropping 2.4% to $67,412.5. Analysts see the race as too close to call, leading to risk aversion in markets.

The uncertainty over the U.S. elections caused Bitcoin to drop after recent gains fueled by speculation on a Trump victory. Harris’ comments on crypto regulation also influenced sentiment, but with the race too close to call, traders turned to safe havens like gold and the dollar. Prediction markets showed Trump leading at 63.7%.

Increasing conviction that the Federal Reserve will cut interest rates at a slower pace in the future pressured crypto prices, along with rising Treasury yields. Traders priced in a higher terminal rate for the Fed, leading to uncertainty in risk-driven markets. Altcoins followed Bitcoin’s decline, with Ethereum dropping 3.5% to $2,642.39.

Read more at Investing.com: down to $67k as crypto rally cools; elections in focus By Investing.com