Cryptocurrencies Slightly Higher Tuesday Evening as Investors Wait for Direction on the Potential Outcome of the U.S. Presidential Election

The price of bitcoin was last higher by 2% at $69,105.03, according to Coin Metrics. Earlier, it rose as high as $70,522.84.

Bitcoin price rose 2% Tuesday evening to $69,105.03, as investors waited for direction on the potential outcome of the U.S. presidential election.

Earlier, bitcoin rose as high as $70,522.84, putting it just 5% away from its all-time high, which it traded near last week.

A clear winner in the election has yet to be declared, and investors are expecting bitcoin trading to be choppy until that happens.

Vice President Kamala Harris is expected to bring risk of downside moves to the price of bitcoin, while traders anticipate a bump in price in the event of a win by former President Donald Trump.

"The election is having a massive influence on crypto," said Ryan Rasmussen, head of research at Bitwise Asset Management. "Expect bitcoin – and crypto more broadly – to be choppy in the days ahead … until we have definitive election results."

"If Trump wins, I believe we'll see new all-time highs," Rasmussen added. "If Harris wins, I expect a decent short-term sell-off, with prices taking a month or two to recover. But eventually, either way, I think we go higher."

Bitcoin is widely expected to rise to a new record in coming weeks. In the 2012, 2016 and 2020 elections, bitcoin saw returns of roughly 87%, 44% and 145% in the 90 days following election day, respectively.

That's in part because election years happen to fall on Bitcoin halving years, when the supply of the cryptocurrency ratchets downward. Post election returns have also tended to align with major Federal Reserve policy shifts. This year, the market is looking forward to further interest rate reductions.

Bitcoin has wavered around the $70,000 mark, after hitting that level last week for the first time since March. At about $69,000, bitcoin has been trading at its fair value price, according to CryptoQuant.

"For now, everyone we've spoken to is keeping their powder dry," said James Davies, CEO at crypto futures and options trading platform Crypto Valley Exchange. "I've heard from numerous leading market makers and traders and can say with conviction that almost everyone is set up to react. They don't even know which way markets will go based on [the] result. There's likely to be massive short-term volatility whichever outcome."