Bitcoin Faces Election Volatility as Market Awaits U.S. Presidential Outcome

• Bitcoin faces increased volatility as the U.S. presidential election approaches, with uncertainty pressuring the market.
• Altcoins like Ethereum and Solana struggle as Bitcoin dominance surges to over 60%.
• Florida’s state pension fund explores expanding its crypto holdings ahead of potential federal regulation changes.

Bitcoin is set for significant volatility in the lead-up to the U.S. presidential election, with market uncertainty adding pressure to cryptocurrency prices. Altcoins, in particular, are facing ongoing struggles as Bitcoin continues to capture the majority of capital inflows.

As the U.S. presidential election approaches, Bitcoin investors are bracing for significant market volatility. Following an initial “Trump Trade” narrative, Bitcoin briefly neared its all-time high last week after months of sideways movement, only to experience a sharp correction.

Currently, Bitcoin is trading at $68,545.40, down 3.4% over the past week. With markets leaning toward a Republican win as beneficial for Bitcoin’s prospects, the election outcome remains uncertain, adding further pressure to the cryptocurrency market.

Implied volatility in Bitcoin options is relatively low leading up to Election Day, suggesting that many investors are holding back until results are confirmed. However, analysts believe a price spike could occur between November 5 and 8 as market sentiment reacts to the results.

Altcoins Struggle as Bitcoin Dominates Capital Inflows

Meanwhile, altcoins continue to face challenges as Bitcoin dominates capital inflows. Bitcoin dominance has surged to over 60%, a cycle high, while altcoins like Ethereum and Solana have seen double-digit declines from recent highs.

Currently, Ethereum is down 7.19% and Solana is down 11.16% over the past week. Without new catalysts, analysts believe altcoins are unlikely to recover in the near term.

U.S. Economy Steady Heading into Election

Despite recent hurricanes and labor disruptions, U.S. economic indicators remain stable ahead of the election. Unemployment holds steady at 4.1%, with year-on-year wage growth at 4%.

Although job openings have declined, consumer spending remains strong, contributing to third-quarter GDP growth of 2.8%. Additionally, the Federal Reserve is expected to maintain a cautious stance on rate cuts to support continued economic expansion.

SEC Tightens Scrutiny on Crypto Firms

In related news, the SEC has intensified its scrutiny of cryptocurrency companies, with blockchain gaming platform Immutable facing potential legal action over its IMX token. Immutable has announced it will vigorously defend its position, claiming that IMX does not qualify as a security.

Meanwhile, stablecoin issuer Tether reported record third-quarter profits of $2.5 billion, supported by $120 billion in USDT circulation and strong reserves in U.S. Treasuries.

Florida’s state pension fund is also making headlines, with CFO Jimmy Patronis expressing support for expanding its $800 million crypto portfolio as a hedge against federal control. This move could gain momentum if former President Trump is re-elected.