Bitcoin Set for Weekly Loss as Risk Appetite Wanes Ahead of Tight Election

Bitcoin's price moved little on Friday, while broader crypto prices retreated as appetite for risk-driven assets remained weak amid uncertainty

Bitcoin price moved little on Friday, while broader crypto prices retreated as appetite for risk-driven assets remained weak amid uncertainty over a tight U.S. election and high interest rates.

The world’s biggest cryptocurrency was also set for weekly losses after it failed to cross a key level this week, amid a dearth of major positive trading cues.

Bitcoin rose 0.4% to $67,38.7 by 01:15 ET (05:15 GMT).

Bitcoin options worth $4.2 billion are set to expire on Friday - an event that could potentially increase crypto market volatility.

Bitcoin set for weekly loss

The token was set to lose about 1% this week, after it largely failed to cross $70,000, which has become a psychologically important level for markets.

$70,000 puts Bitcoin about $4,000 away from making new highs - an event that is expected to mark a bullish point for crypto markets.

While increased odds of a Donald Trump victory in the upcoming presidential election had initially boosted crypto prices, this enthusiasm ran out of steam this week, as analysts predicted a tight race against Democratic nominee Kamala Harris.

Speculation over a Trump presidency also boosted the dollar, pressuring crypto markets as traders bet on more inflationary policies in the coming years.

Uncertainty over the election kept traders wary of risk-driven assets and largely biased towards safe havens such as the dollar and gold, with the latter hitting a record high this week.

The dollar was also supported by increased bets that the Federal Reserve will cut interest rates at a slower pace in the coming months - a scenario that bodes poorly for speculative assets such as crypto.

Crypto price today: altcoins sink, Solana set for stellar week

Broader crypto prices retreated on Friday, with major altcoins mostly moving in a flat-to-low range. World no.2 crypto Ether fell 2.3% to $2,497.84, with the coin expected to see increased volatility with the expiry of $1 billion in options later on Friday.

While most altcoins were headed for weekly declines, Solana was an outperformer, as increased blockchain activity - specifically among memetokens linked to artificial intelligence - boosted the token. SOL was set to add 8.7% this week, vastly outpacing broader crypto markets.

Other altcoins ADA, MATIC and XRP all declined on Friday, while among memecoins, DOGE rose 0.6%.