Bitcoin Price Tumbles to $64K: Impact of US Politics and Market Trends

The Bitcoin price took a downturn on Thursday, continuing a week-long slump influenced by broad risk-averse behavior and political uncertainties in the U.S. As traders distanced themselves from riskier assets, both Bitcoin and Ether, the world’s second-largest cryptocurrency, faced significant selling pressure.

 This trend was exacerbated by a lacklustre response to the new U.S. spot exchange-traded funds (ETFs), which failed to attract the capital seen by earlier Bitcoin ETF launches. Additionally, the political landscape was roiled by President Joe Biden’s withdrawal from the presidential race, endorsing Vice President Kamala Harris as the Democratic frontrunner.

Political Climate Affects Crypto Market Sentiment

The withdrawal of Biden and the endorsement of Harris, known for her rigorous regulatory stance from her days as a public prosecutor, sparked concerns about stricter financial oversight that could unfavorably impact the cryptocurrency market.

KAMALA'S CORONATION: Weeks after publicly calling on Biden to step down, George Clooney joins the wave of Hollywood celebrities throwing their weight behind Vice President Harris following President Biden's withdrawal from the presidential race. https://t.co/kXMgeCLDJe pic.twitter.com/GHSUIcuEwY

— Fox News (@FoxNews) July 23, 2024

 Speculations around the upcoming presidential elections, where Donald Trump is perceived as more crypto-friendly, also played into market sentiments. Trump’s scheduled appearance at the Bitcoin Conference further highlighted the political dimensions influencing cryptocurrency valuations.

External Pressures and Cryptocurrency Valuations

External market forces also shaped trading behaviors, as Wall Street faced sharp declines due to disappointing tech earnings, sending shockwaves through financial markets.

The board of Weeva has called for the closure of the business “based on a considered view of external market forces, associated risks and the path to commerciality of the business.” https://t.co/Q9aLjefO3r

— PhocusWire (@phocuswire) July 21, 2024

Concurrently, the cryptocurrency sphere was rattled by movements of large Bitcoin holdings from the defunct Mt. Gox exchange, stirring fears of a potential sell-off by recipients of these long-lost tokens. Such movements underscore the fragility of crypto prices to external shocks and longstanding issues within the crypto ecosystem. 

As Ether and other altcoins like XRP, SOL, and ADA also experienced declines, the day’s trading painted a grim picture of investor confidence across the cryptocurrency spectrum.

This collective downturn underscores the interconnected challenges of political developments, regulatory concerns, and traditional market influences in shaping the future trajectory of Bitcoin and other digital assets.