Bitcoin (BTC) Braces for Election Day Volatility as Altcoins Struggle to Regain Footing

Bitcoin is set for significant volatility in the lead-up to the U.S. presidential election, with market uncertainty adding pressure to cryptocurrency prices.

Bitcoin price is poised to fluctuate significantly as market uncertainty approaches the United States presidential election, weighing on cryptocurrency prices. Altcoins in particular face ongoing challenges as Bitcoin continues to capture the majority of capital inflows.

As the US presidential election approaches, Bitcoin investors expect significant volatility in the market. Following an initial “Trump Trade” narrative, Bitcoin briefly approached an all-time high last week after months of sideways movement, followed by a sharp correction.

Currently, Bitcoin is trading at $68,545.40, down 3.4% from last week. While markets view a Republican victory as beneficial to Bitcoin's prospects, the election outcome remains uncertain, weighing on the cryptocurrency market.

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

Altcoins Struggle as Bitcoin Dominates Capital Inflows

Altcoins, on the other hand, continue to face challenges with Bitcoin dominating capital inflows. Bitcoin dominance has surged above the cycle peak of ` and altcoins such as Ethereum and Solana have recorded double-digit declines from recent peaks.

Currently Ethereum is down 7.19% and Solana is down .16 compared to last week. Analysts say that without new catalysts, altcoins are not expected to recover anytime soon.

US Economy is Progressing Steadyly Towards the Elections

Despite recent hurricanes and labor issues, US economic indicators remain stable ahead of the election. While the unemployment rate remained stable at 4.1%, the annual wage increase rate was 4%.

Although there were declines in job postings, consumer spending was strong and contributed 2.8% to third-quarter GDP growth. Additionally, the Federal Reserve is expected to maintain its cautious stance on interest rate cuts to support economic expansion.

SEC Is Closely Examining Crypto Companies

In related news, the SEC has begun to take a closer look at cryptocurrency companies, with blockchain gaming platform Immutable facing potential legal action over its IMX token. Immutable announced that it would vigorously defend its position, claiming that IMX does not qualify as a security.

On the other hand, stablecoin issuer Tether reported record profits of $2.5 billion in the third quarter, supported by $120 billion in USDT circulation and strong reserves in US Treasury bills.

While Florida state's pension fund is also on the agenda, Chief Financial Officer (CFO) Jimmy Patronis supports the fund's expansion of its $ 800 million crypto portfolio as a precaution against federal control. This movement could gain momentum if former President Trump is re-elected.

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