Crypto Markets Drop for Sixth Day Ahead of U.S. Elections

Cryptocurrency markets are on track for a sixth day of losses on the eve of the U.S. presidential election.

Bitcoin (BTC) is down 1% to $67,907, with Ethereum (ETH) dipping 2% to $2,400. Meanwhile, Solana (SOL) and Polkadot (DOT) are flat on the day. Overall, the global crypto market cap is down by 2.6% to $2.35 trillion over the last 24 hours.

The Crypto Fear and Greed Index sits at a "Greed" level of 70, indicating optimism in the market. This reflects a notable shift from October when it hovered between 40 and 49.

Leveraged positions took a substantial hit in the past 24 hours, with 100,647 traders liquidated for $229 million. More than $140 million of these liquidations were from bullish bets, according to data from CoinGlass.

Crypto Funds Record $2.2B in Inflows

Digital asset investment products recorded strong inflows in the past week, totaling $2.2 billion from Oct. 26 to Nov. 2, pushing year-to-date inflows to $29.2 billion, according to CoinShares’ Digital Asset Fund Flows weekly report.

James Butterfill, head of research at CoinShares, attributed the inflows to growing optimism around a Republican win in tomorrow’s election.

“We believe euphoria around the prospect of a Republican victory was the likely reason for these inflows as they were in the first few days of last week; as polls have turned, we saw minor outflows on Friday, highlighting how sensitive Bitcoin is to the US elections at present,” Butterfill said.

Last week, Bitcoin was nearly the exclusive recipient of crypto inflows, pulling in around $2.2 billion as its price approached all-time highs. Interestingly, some investors also leaned toward short-Bitcoin products, with these funds attracting inflows of $8.9 million.

Meanwhile, Ether investment products trailed behind, capturing $9.5 million in inflows but still showing less bullish momentum than Bitcoin. Solana attracted $5.7 million in new investments.

Trump Leads Harris Across Crypto Prediction Platforms

On Polymarket, a crypto-based prediction market, Trump leads with a 58% likelihood of winning the presidency versus Harris’ 42%. Polymarket’s Presidential Election Winner 2024 market has recorded $2.7 billion in trading volume.

On Kalshi, another crypto prediction platform, Trump is at 52%, with Harris at 48%.

“We expect spot to chop around this range until we get more clarity on the election results this week, where a Trump win is likely to cause a knee-jerk reaction higher, and vice versa if Kamala wins,” said digital asset trading firm QCP Capital.

U.S. stocks posted minor losses ahead of the election, with the S&P 500 down 0.2% and the Nasdaq-100 slipping 0.1%.