The crypto market just took a surprising dive after hitting a 3-month high, with the global market cap dropping by 2.2% to $2,34 trillion. Meanwhile, the leading cryptocurrency, fell below $67,000, showing a 2.7% decline. This nervousness has led to a short-term dip, causing a quick pullback as investors grow cautious.
Election Worries Impact Bitcoin
With only two weeks left before the U.S. presidential election, concerns are growing about the outcome. Earlier, hopes for a Trump victory boosted crypto prices, as Trump is more favorable to cryptocurrencies.
Vice President Harris also made some positive remarks about potential crypto regulation, which helped boost confidence. However, with the race now looking too close to call, some investors are pulling back from risky assets like Bitcoin and turning to safer options like gold and the U.S. dollar.
Prediction platforms like Polymarket still favor Trump, giving him a 63.5% chance of winning, while Harris stands at 36.2%. But the uncertainty is making investors nervous.
Federal Reserve’s Interest Rate Moves
Another factor weighing on the crypto market is the belief that the Federal Reserve will cut interest rates more slowly than expected. This expectation has strengthened the U.S. dollar and pushed up Treasury yields, which tends to hurt riskier investments like cryptocurrencies.
Investors are now preparing for the possibility that interest rates will stay high for longer, making it harder for speculative assets, like Bitcoin, to recover in the short term.
Gold Reaches Record Highs
As cryptocurrencies face pressure, gold has become a safe haven for investors. Gold prices have hit a record high of $2,725.81, with a market value around $18.383 trillion. Silver has also surged, reaching its highest price in nearly 12 years, driven by rising tensions in the Middle East.
