July 24 2024: Bitcoin’s price fell on Wednesday, extending its losses for the week due to weak risk appetite amid uncertainty over the U.S. political outlook. The launch of spot exchange-traded funds (ETFs) tracking Ether also failed to boost the sector, with Ether prices declining on Tuesday and trading flat on Wednesday.
Bitcoin dropped 1.7% in the past 24 hours to $65,793.5 by 01:56 ET (05:56 GMT). The token had rebounded to $69,000 over the weekend but is now reversing course.
Bitcoin Faces Pressure from Political Uncertainty and Weak Risk Appetite
Bitcoin is under pressure from increased uncertainty surrounding the U.S. presidential race, especially after President Joe Biden withdrew his reelection bid and endorsed Vice President Kamala Harris. Harris has quickly gained support within the Democratic Party and is expected to be the party’s presidential candidate.
This sets up a potential showdown with Republican candidate Donald Trump, who was previously polling ahead of both Biden and Harris. Expectations of a Trump presidency had fueled some gains in crypto, given his positive stance towards crypto in recent campaigns. Trump is also scheduled to speak at the Bitcoin Conference in Nashville this Saturday.
However, Harris was seen polling ahead of Trump in a Reuters/Ipsos poll conducted just after Biden’s endorsement.
Spot Ether ETFs See Strong Volumes but Minimal Price Movement
Six ETFs tied directly to the price of Ether began trading in U.S. markets on Tuesday, attracting trading volumes of over $1 billion on their first day. However, this volume 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 flat at around $3,440.97 on Wednesday. While the launch of the spot Ether ETFs is expected to attract more institutional investors to crypto, the actual demand for the product remains unclear. Trading volumes in spot Bitcoin ETFs have also dwindled since their debut earlier this year.
Altcoins See Limited Movement
Among broader crypto markets, major altcoins showed limited movement on Wednesday as sentiment for risk-driven assets remained weak. SOL and XRP traded within a tight range, while ADA lost 2.6%. Meme tokens such as DOGE shed 1.9%, and SHIB fell 0.7%.
