Bitcoin Wobbles as US Election Race Casts Doubt on Trump's Crypto Agenda

The digital asset slid 2.4 per cent on Wednesday (Jul 31), trailing a Fed-fueled surge in an index of the Magnificent Seven technology megacap stocks by one of the biggest margins in 2024.

The virtual currency Bitcoin has missed the cross-asset (multi-asset) rally backed by the Federal Reserve's monetary easing stance. This is because the close race in the US presidential election has cast doubt on the possibility of President Donald Trump's pro-cryptocurrency policies being implemented.

While the "Magnificent Seven" index, which consists of seven major technology stocks, rose sharply due to the Fed market, Bitcoin fell by 2.3%, the largest gap since the beginning of 2024. Ta. It fell below $64,000 on the 31st Asian time.

Bitcoin has become an indicator of the president's re-election probability since President Trump pledged to make the United States the "cryptocurrency capital and Bitcoin superpower."

Senator Kamala Harris, seen as the Democratic presidential candidate, has reversed President Trump's lead in seven battleground states with enthusiastic support from young, black, and Hispanic voters. According to the political prediction market Predict It, Sen. Harris has a higher probability of winning than President Trump.

The Harris campaign has not yet made its stance on the cryptocurrency sector clear.

Noel Acheson, who writes the cryptocurrency newsletter “Crypto Is Macro Now,” pointed out that Rep. Harris’ “rise” is a “political factor suppressing” the price of Bitcoin. Kyle Doan, head of trading at Arca, said some of Bitcoin's recent weakness may be due to Harris' "up in the polls."

Meanwhile, at a National Association of Black Journalists (NABJ) meeting held in Chicago on the 29th, President Trump questioned Rep. Harris' racial identity, and her comments aimed at winning votes for people of color caused controversy. Brewed.

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This slump in Bitcoin indicates a reconsideration of the market regarding the "Trump trade," which refers to Trump-related stocks. President Trump's "Trump trade" attracted attention last month as it was perceived as increasing his chances of winning the presidential election.

In addition to this political trend, the virtual currency market is currently facing the possibility that the U.S. government will sell Bitcoins seized by the U.S. government, and that some creditors of the bankrupt cryptocurrency exchange Mt.Gox may sell recovered virtual currency. is considered a material.

Fed Chairman Jerome Powell announced on the 29th that the Fed plans to cut interest rates in September if inflation does not slow down. An accommodative monetary policy outlook contributed to the rally in US stocks and bonds.

Bitcoin is up more than 45% so far this year, supported by inflows into US token ETFs. The rally has slowed since peaking at $73,798 in March. The ETF was launched in January 2024.

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