Bitcoin’s plunge has been sharp and sudden, dropping more than 10% from its high of $70K just 72 hours ago. After hitting a four-month peak, the cryptocurrency has slid to a two-week low of $62,700. Adding to the drama, Trump’s odds of winning the upcoming election have also been slipping. The excitement from Bitcoin’s rise was fueled partly by Donald Trump’s promise to support the cryptocurrency and even consider it as a strategic asset. However, his chances have declined significantly.
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Moreover, according to Polymarket, Trump’s probability of victory has dropped from 70% to 55% in the past two weeks, while Kamala Harris’s chances have increased to 44%. This change in the political landscape could potentially impact Bitcoin’s future.
Trump’s Election Odds Are Impacting BTC
The recent surge in Bitcoin was partly driven by the Bitcoin 2024 conference in Nashville, where Trump’s supportive stance on cryptocurrency generated significant optimism. But with Trump’s chances of winning the election fading, Bitcoin bulls might need to rethink their strategies. The potential impact of a Kamala Harris administration on the crypto world remains to be seen, but the shifting odds are adding a layer of uncertainty.
Global Rate Cuts Boost Bitcoin’s Outlook
Despite Trump’s election odds weighing on BTC’s price, recent U.S. economic data has been favorable for Bitcoin. The July ISM Manufacturing PMI fell more than expected on Thursday, leading to lower interest rates. Additionally, initial jobless claims surged to a one-year high, prompting some analysts to believe that the Federal Reserve might be moving toward a monetary easing cycle. Fed Chairman Jerome Powell hinted at the possibility of a rate cut in September if economic trends continue.
Globally, the Bank of England joined the trend by cutting its benchmark lending rate for the first time in four years. This global move toward lower rates is generally seen as favorable for risk assets, including cryptocurrencies like Bitcoin.
What Is the Price of BTC?
At the time of writing, Bitcoin’s price is sitting at $62,868.56.
