The Crypto Market Holds Its Breath as the Latest Polls Show a Significant Decline in Donald Trump’s Chances of Winning the U.S. Presidential Election

The predictive platform Polymarket has recorded a 4.5% drop in the chances of Donald Trump winning in just a few days. The former president, who previously maintained a comfortable lead of over 60% in winning chances, sees his score fall to 58.1%.

The latest polls are showing a interesting development that could have a big impact on the crypto market. Donald Trump’s chances of winning the U.S. presidential election are decreasing rapidly, according to the latest polls. This could lead to a change in the administration’s crypto policies, which would be a welcome development for the industry.

A political shift with direct crypto implications

The predictive platform Polymarket has shown a 4.5% decrease in Trump’s winning chances in just a few days. The former president, who previously had a comfortable lead of over 60% in winning chances, now sees his score drop to 58.1%.

This decrease is largely due to a loss of ground in crucial swing states, such as Wisconsin and Michigan, though he maintains a lead in other key states, such as Arizona and Pennsylvania.

The implications of this new political dynamic on financial markets are undeniable. For instance, a French trader has reportedly placed a massive bet of $38 million on Trump’s victory, anticipating a potential gain of $80 million. Such high-stakes maneuvers highlight the scale of financial interests tied to this election.

In a related development, institutional investors are making adjustments in response to the growing uncertainty. Data reveals a significant transfer of 180,000 BTC from long-term investors to ETF buyers.

Immediate impact on crypto prices

Bitcoin, which had reached $73,000 at the beginning of the week, quickly corrected to below the $70,000 mark. This decline was accompanied by a more pronounced movement in the altcoin market, with Ethereum dropping below $2,500.

The spot Bitcoin ETFs are showing their first negative balance in eight trading sessions, despite the continued dominance of the BlackRock IBIT ETF, which has seen inflows of over $26 billion. This correction reflects an increasing caution among investors amidst the political uncertainty.

Meanwhile, the market is also seeing an increase in leveraged positions, indicating growing speculation around the electoral event. Seasoned traders, such as Peter Brandt, anticipate a possible continuation of the correction, keeping an eye on the crucial support level of $2,480 for Ethereum.

This period of political uncertainty highlights the ongoing sensitivity of the crypto market to major political events, underscoring the importance of prudent position management in this volatile landscape.