2024 US Election Impact: Bitcoin ETFs Face Second-Largest Outflow in History
2024 US Election – Bitcoin exchange-traded funds (ETFs) based in the United States saw significant outflows as Bitcoin‘s price remained volatile in the lead-up to the 2024 US Presidential Election. On November 4, the day before Americans went to vote, Bitcoin ETFs recorded their second-largest outflow ever, with a total of $541.1 million in withdrawals, according to data from CoinGlass. This followed a week of price fluctuations and uncertainty surrounding the political landscape, with Bitcoin falling by 4.6% over the last seven days.
Bitcoin ETFs Face Significant Outflows Ahead of Election Day
The spot Bitcoin ETFs market, which includes 11 funds, had a rough day on November 4, with most funds experiencing substantial outflows. However, BlackRock’s iShares Bitcoin Trust ETF (IBIT) was the only one to see inflows, amounting to $38.4 million. This outflow of $541.1 million marks the second-largest day of withdrawals for the Bitcoin ETF market, just behind the $563.7 million outflows recorded on May 1, when Bitcoin fell by 10.7% over a week to reach the $60,000 level.
Bitcoin’s Price Drop and Market Sentiment
As Bitcoin‘s price dropped to around $68,000, traders were trimming their exposure to risk assets such as cryptocurrency in anticipation of the US presidential election. The volatility leading up to November 5 was compounded by the uncertainty surrounding the race between Kamala Harris and Donald Trump, who were virtually tied in polls as Election Day approached.
Trump Vs Harris: The Final Push in Battleground States
In the final hours before the election, both candidates intensified their campaigning. Kamala Harris, the Democratic vice-presidential candidate, spent November 4 in Pennsylvania, making stops in Scranton, Allentown, Pittsburgh, and Philadelphia. She participated in rallies and concerts alongside celebrities to rally support.
On the other hand, Donald Trump focused on key battleground states such as North Carolina, Pennsylvania, and Michigan. After his final rally, Trump was expected to head back to Palm Beach, Florida, where he planned to cast his vote in person and hold an election-night dinner for his supporters.
Bitcoin’s Price Volatility Expected to Increase
In the lead-up to Election Day, Bitcoin’s price had already experienced a sharp 8% correction between October 29 and November 3, briefly dipping to $67,446 over the weekend. Despite this, the longer-term market structure for Bitcoin remains bullish. However, traders are bracing for more volatility as the election results draw closer.
As election results in key battleground states like Arizona, Georgia, Michigan, and Pennsylvania could take days or even weeks to finalize, investors are bracing for additional price fluctuations.
Election Day Delays and Election Night Uncertainty
Election officials have warned voters to expect potential delays on Election Day, which could result in long lines, late-opening polling sites, and possible power outages. Moreover, results on election night are expected to be preliminary, as the final tally will include ballots cast by mail, in person, and by overseas and military voters. Close races may necessitate recounts, further delaying the official results.
Crypto Regulation Takes Center Stage in 2024 US Elections
Crypto regulation has emerged as a key issue in the 2024 US presidential race. Donald Trump, who was once skeptical about cryptocurrencies, has positioned himself as a strong advocate, even supporting efforts to make the US the “crypto capital of the world.” Trump’s campaign has also started accepting crypto donations, signaling alignment with pro-crypto voters.
Kamala Harris, on the other hand, recently broke her silence on crypto during a Wall Street fundraiser in September, calling for a safe business environment with clear and consistent rules for digital assets. Her campaign has also reached out to crypto leaders to discuss potential industry-friendly regulations.
With both major candidates taking strong stances on digital asset regulations, the outcome of the election could have significant implications for the future of cryptocurrency in the United States.
Crypto Whales Bet on Trump Win as Election Approaches
Ahead of the 2024 US Election, crypto whales are placing substantial bets on a potential Trump win. On decentralized prediction markets like Polymarket, large investors control the majority of “Yes” votes for Trump. Collectively, five whales hold over 50% of Trump shares, which could result in a combined payout of over $81 million if Trump wins the election.
Expect Delayed Election Results and Increased Market Volatility
Given the tight race in key battleground states, it’s unlikely that Americans will know the winner on the night of November 5. Similar to the 2020 election, where the results were delayed for several days, this year’s tight margins could cause delays in final counts. Seven states are considered crucial swing states that will likely determine the election outcome, including Arizona, Georgia, Michigan, and North Carolina.
Analysts believe that election results this year might be available sooner than in 2020, as more people voted early. Nevertheless, Bitcoin and other crypto markets are likely to see heightened volatility as the election results unfold.
Crypto Voters and Legislation for 2024 Election
As digital assets continue to gain prominence as a political issue, crypto voters are closely watching the 2024 US election. Industry leaders are pushing candidates to commit to policies that encourage growth in the crypto space while providing regulatory clarity. Key pieces of crypto legislation are under consideration, and whichever candidate emerges victorious will likely have a significant role in shaping crypto policy for years to come.
Bitcoin’s Battle for $69,000: What to Expect This Week
As Bitcoin enters the final week before the election, the cryptocurrency is in a battle for the $69,000 mark. With macroeconomic events, such as election-related uncertainty, and network fundamentals at play, the market is likely to remain volatile. The price of Bitcoin started the week just above $62,200, but analysts expect further fluctuations as traders respond to both political developments and economic news.
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