Bitcoin set to fall on weekly basis as Trump's victory odds slide (Cryptocurrency:BTC-USD)

Bitcoin (BTC-USD) is set to witness a 7.4% weekly fall, as the prospects of crypto-friendly Republican nominee Donald Trump securing the presidency in November further diminished.

The world’s oldest cryptocurrency saw a gradual decline over the week, after starting off strongly.

“The crypto market experienced a pullback. News speculating Trump’s presidential odds falling back below 50% while Kamala is on the rise is likely the main contributor to the sell-off,” Augustine Fan, founder, SOFA.org said.

The solid start was mainly as traders digested Trump’s speech on crypto over the weekend.

Making an appearance at the Bitcoin 2024 Conference in Nashville over the weekend, Trump, who wasn’t always friendly to crypto, vowed to create a strategic national bitcoin stockpile, fight CBDCs, defend the right to self-custody, and institute the “responsible expansion of stablecoins to extend the dominance of the U.S. dollar to new frontiers.”

Bitcoin (BTC-USD) briefly dropped to below $66K on Tuesday, after hovering near the $70K mark in the prior session, as concerns of potential selling pressure mounted after the U.S. government moved $2B worth of the cryptocurrency.

The highest-profile token saw a further fall on Wednesday, as the Federal Reserve held rates steady for the month, but signaled a possible rate cut in September.

BTC also saw an intraday decline on Thursday, as it followed suit of the major U.S. equity averages, which witnessed a sell-off on the day, as soft economic data reignited questions about the Fed’s decision to wait longer on cutting interest rates.

BTC will likely remain in the 60-70k range in the near term, but we are still positive for Q4 with the long-term bullish story remaining intact, Fan added.

“While Bitcoin tested the upper region of our support zone, we believe that the low is likely in. We are setting up for the next leg higher,” SA analyst Knox Ridley said.

Notable News

Ault Alliance (AULT) said it will focus on its artificial intelligence data center space as part of its reorganization strategy.

A U.S. strategic Bitcoin (BTC-USD) reserve would fund purchases of the cryptocurrency in part by revaluing gold (XAUUSD:CUR) certificates held by the Federal Reserve, CoinDesk reported earlier this week, citing a draft of the proposed bill.

Privately held shares of Circle Internet Financial, the issuer of stablecoin USDC (USDC-USD), are changing hands in the secondary market at a price that suggests a valuation of $5B-$5.25B ahead of its planned initial public offering.

Bitcoin, Ether prices

Bitcoin (BTC-USD) fell to $62.9K at 3:03 pm on Friday, amid a fall in major stock averages, after the July U.S. jobs report stoked fears the world’s largest economy is headed toward a recession. Ether (ETH-USD) down ~2.5% to $3K.

“The dizzy heights of $100k could be in sight, but there needs to be a convincing breakout and a rally might be more tempered compared to previous ones,” said SA analyst Clem Chambers, and added, Bitcoin’s (BTC-USD) value, driven by investor confidence, could surge with government backing.