Bitcoin’s price has taken a sharp downturn in the past three days, dropping over 10% to reach a two-week low of $62,700. As of now, Bitcoin is down by 5.5% in the last 24 hours, performing better than other cryptocurrencies like Ether (ETH), Solana (SOL), and XRP (XRP) which have experienced even larger declines.
The recent decline in Bitcoin’s price comes after it reached a four-month high of over $70,000 just 72 hours ago. The market saw some positive news on Thursday morning, as the U.S. July ISM Manufacturing PMI fell more than expected, leading to a decrease in interest rates across the board. Additionally, U.S. initial jobless claims rose to their highest level in a year. These factors have raised speculation that the Federal Reserve may implement a monetary easing cycle, which is generally seen as positive for risk assets like Bitcoin.
Following the Fed’s policy meeting, Chairman Jerome Powell hinted that a rate cut in September is possible if economic growth continues to slow down. The Bank of England also joined other central banks in easing monetary policy by reducing its benchmark lending rate for the first time in four years.
Looking ahead, Bitcoin bulls are considering the impact of the upcoming U.S. presidential election on the cryptocurrency market. The recent rise in Democratic nominee Kamala Harris’ election odds to 44% has led to a decline in President Trump’s chances of winning to 55%. This shift in political landscape has raised concerns among Bitcoin supporters about the future regulatory environment under a potential Harris administration.
While Trump had previously expressed support for Bitcoin and cryptocurrency, the changing election dynamics have created uncertainty among investors. The industry is now facing the possibility of a less crypto-friendly president in 2025, depending on the election outcome. It remains to be seen how a Harris administration would approach Bitcoin and whether regulatory policies would be as favorable as those under a Biden presidency.
Overall, the recent price drop in Bitcoin reflects a combination of market factors, including economic data, central bank policies, and political developments. Investors will be closely monitoring these events to gauge the future direction of the cryptocurrency market and adjust their strategies accordingly.