Crypto Markets Tumble Alongside U.S. Equity Slump, Swirling Election Speculation

BTC plunged to $63,500 from $65,000 in just two hours during mid-morning trading hours in the U.S., and was down 1.7% over the past 24 hours.

Crypto markets slid on Wednesday as U.S. equity prices continued to falter and speculation about the presidential election race intensified.

BTC dropped to $63,500 from $65,000 in just two hours during mid-morning trading hours in the U.S., showing a 1.7% decrease over the past 24 hours. No. 2 crypto ether (ETH) and Solana's native token (SOL) performed slightly better, although both were down more than 1%.

Smaller digital assets fell even more, dragging the broad-market benchmark Coindesk 20 Index (CD20) down by 2.8%. Leading the decline were 5%-6% drops for Ripple's XRP (XRP), Polkadot's DOT (DOT), Cardano's ADA (ADA) and Polygon's token (MATIC).

The price action comes as U.S. equities failed to rebound from significant declines earlier this week, with the tech-heavy Nasdaq 100 slipping another 1% and the broad-based S&P 500 dropping 0.7%.

Speculation about the U.S. presidential election has risen sharply in recent hours, with reports indicating mounting pressure from top party officials on President Biden to not seek re-election.

Traders on the crypto-focused prediction market Polymarket now see an 80% chance of Biden dropping out, up from 40% a day earlier. At the same time, Vice President Kamala Harris's odds of becoming the Democratic presidential nominee have soared to 63% from 15% a day ago.

Meanwhile, GOP nominee Donald Trump's chances of winning presidency slightly decreased on Polymarket to 65%, down from a 70% high after surviving an assassination attempt last weekend.

The recovery in crypto prices over the past week was partly driven by investors anticipating a higher chance of Trump winning the election and, with it, a more crypto-friendly administration in the U.S.

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