Title: Bitcoin Price Falls Amid Political Uncertainty and Weak Risk Appetite – Crypto Market Update
Investing.com– The price of Bitcoin experienced a decline on Wednesday, continuing the losses from earlier in the week due to weak risk appetite and uncertainty surrounding the U.S. political landscape. The launch of spot exchange-traded funds tracking Ether also failed to boost sentiment in the sector, with prices dropping on Tuesday and trading flat on Wednesday.
Bitcoin fell by 1.7% in the past 24 hours, reaching $65,793.5 by 01:56 ET (05:56 GMT) after briefly rebounding to $69,000 over the weekend.
The cryptocurrency faced pressure amidst increased uncertainty over the U.S. presidential race, particularly after President Joe Biden withdrew from the reelection bid and endorsed Vice President Kamala Harris. Harris is now expected to be nominated as the Democratic party’s presidential candidate, setting up a potential showdown with Republican candidate Donald Trump.
The launch of spot Ether ETFs saw strong trading volumes, surpassing $1 billion on their first day of trading. However, this was significantly lower than the $4.6 billion traded during the debut of spot Bitcoin ETFs earlier this year. Ether’s price also declined on Tuesday and remained steady around $3,440.97 on Wednesday.
While the introduction of spot Ether ETFs is anticipated to attract more institutional investors to the crypto market, the actual demand for the product remains uncertain. Trading volumes in spot Bitcoin ETFs have also decreased since their initial launch.
In broader crypto markets, major altcoins saw limited movement on Wednesday as sentiment towards risk-driven assets stayed weak. Altcoins like Ethereum and Litecoin traded in a narrow range, while meme tokens experienced slight declines.
In conclusion, the recent fluctuations in the cryptocurrency market, driven by political uncertainty and weak risk appetite, highlight the importance of staying informed and cautious when investing in digital assets. It is essential to closely monitor market trends and developments to make informed decisions about your finances and investments.