Slips to $66k; Ether Remains Steady Ahead of Spot ETF Launch

Bitcoin and Ether Prices Decline Amid Political Uncertainty

Bitcoin experienced a decline on Tuesday as the recent gains from the weekend faded, largely due to increasing uncertainty surrounding the U.S. presidential race. Traders are particularly focused on an upcoming speech by Republican presidential nominee Donald Trump.

The second-largest cryptocurrency, Ether, also saw a drop, despite the Securities and Exchange Commission’s approval of six spot Ether ETFs set to begin trading later in the day.

As of 09:12 ET (13:12 GMT), Bitcoin had decreased by 1.8% over the past 24 hours to $66,425.70. This follows a weekend high of $69,000, but momentum stalled on Monday. Ether dropped 0.2% to $3,495.58, with expectations of selling pressure as major ETF issuers prepared for their product launches.

Bitcoin’s Rebound Stalls; Anticipation for Trump’s Address

Bitcoin’s recent losses extended into a second session, with the weekend rebound being supported by lower trading volumes. However, Bitcoin remains up over the past week, buoyed by speculation about a possible Trump presidency, which raised hopes for a more favorable regulatory landscape for cryptocurrencies.

Trump is scheduled to speak at a Bitcoin conference in Nashville this Saturday. Throughout his campaign, he has maintained a pro-crypto stance, and his campaign has been known to accept cryptocurrency donations.

Uncertainty increased surrounding Trump’s electoral chances following President Joe Biden’s withdrawal from the 2024 race and subsequent endorsement of Vice President Kamala Harris as the Democratic nominee. While Harris has garnered support from Democratic delegates, her official appointment is still pending.

Polling data from last week indicated Trump might be ahead of both Biden and Harris, although it remains uncertain how Biden’s exit will impact the dynamics, with some analysts believing Harris could perform better against Trump.

Ether ETF Launches; Altcoins Struggle

Ether’s price fell after the SEC approved six different applications for a spot ETF in U.S. markets, which began trading on Tuesday. This launch comes nearly six months after spot Bitcoin ETFs were approved, which initially drove Bitcoin to record highs in March. However, Bitcoin has since struggled around the $60,000 mark, with trading volumes in the ETFs declining.

Additionally, Ether faces potential selling pressure as Grayscale, the operator of an Ether trust looking to convert to a spot ETF, moved $1 billion in Ether onto exchanges.

Other altcoins mirrored the downturn experienced by Bitcoin and Ether, with notable losses among various tokens. Some meme tokens also saw declines, with one dropping by 4% and another down by 5.3%.

Increased BTC Options Implied Volatility Ahead of Trump’s Conference Appearance

Market analysts attribute part of the current volatility in Bitcoin prices to Trump’s upcoming appearance at the Nashville Bitcoin conference this weekend. Analysts at QCP Capital noted a considerable rise in the prices of out-of-the-money options, which reflects expectations for more pronounced market movements.

This sentiment is further illustrated by the increase in Bitcoin options open interest on Deribit, where implied volatility has risen from 53% to 67% over the past week.

Additional key events, such as inflows into spot Bitcoin ETFs and the release of U.S. GDP and Personal Consumption Expenditures Price Index reports, are also expected to contribute to market volatility.