Bitcoin at critical juncture amid election uncertainty

Bitcoin and other crypto assets lost their mid-week momentum and fell to the critical threshold of $60,000.

Tensions in the Middle East and uncertainty surrounding the US elections were among the factors that triggered the decline. Analysts noted that the US presidential election could have significant impacts on crypto markets.

Tensions in the Middle East have put downward pressure on crypto assets this week. Rising Iran-Israel tensions have increased geopolitical risks, while Bitcoin, considered the riskiest investment vehicle, has been negatively affected by these developments.

On the other hand, the news flow that the US government transferred $2 billion worth of Bitcoin from among the crypto assets it had previously seized also triggered downward pressure.

US Presidential Candidate Donald Trump promised during a speech earlier this week that the US would never sell Bitcoin. However, the US government has moved $2 billion worth of Silk Road Bitcoins that it seized years ago.

THE LATEST SITUATION IN CRYPTO

Approaching $70,000 during the week, Bitcoin's weekly decline exceeded 10 percent, while the leading crypto asset was traded at $60,300.

Ethereum was traded at $2,880, Ripple at $0.54, Dogecoin at $0.105, and Solana at $140.6.

ELECTION AFFECTS THE AGENDA

Bitcoin is part of a key Trump campaign promise, analysts say, and crypto assets are directly exposed to the ups and downs of the US presidential election.

Matthew Graham, founder and managing partner of Ryze Labs, commented on the subject:

“In the short term, there are several factors currently affecting the price of Bitcoin, including the potential for interest rates to fall, the likelihood of a Trump victory in the upcoming election, and the potential impact of a crypto overhaul under the Kamala Harris administration. The market is carefully evaluating the likelihood and potential ramifications of such a policy change.”