Investing.com – Bitcoin fell on Wednesday as appetite for risk assets remains delicate amid U.S. election uncertainty and as investors move toward smaller interest rate cuts from the Federal Reserve.

The stock fell 0.5% to $67,161.7 by 01:02 ET (05:02 GMT) after largely failing to breach the $70,000 level earlier this week.

Falls in global stock markets also signaled that risk appetite remains delicate, and the upcoming expiration of around $4 billion in Bitcoin options is expected to augment cryptocurrency market volatility in the coming days.

Bitcoin affected by uncertainty related to the presidential elections

Recent polls and online prediction markets have shown that Republican candidate Donald Trump is gaining an advantage over Democratic candidate Kamala Harris in the 2024 presidential election.

However, the race was still seen as too close to call, especially with about two weeks left until the vote.

While increased optimism surrounding the Trump presidency initially boosted cryptocurrency prices, that enthusiasm now appears to be waning, especially as the election approaches.

Trump has maintained his pro-crypto stance, promising to introduce cryptocurrency-friendly regulations if elected. Harris also recently pledged to introduce a regulatory framework for cryptocurrencies.

Rate fluctuations are hammering at cryptocurrencies as dollar companies

Cryptocurrency markets also came under pressure for stronger growth as rising expectations for a slower pace of Federal Reserve interest rate cuts pushed the dollar to near three-month highs.

Investors were seen pricing in a greater chance that the Fed would cut interest rates by a smaller 25 basis points in November, and they also favored a higher terminal rate. This idea pushed Treasury yields to their highest levels in almost three months, putting pressure on risk-based assets.

Higher rates bode ill for speculative assets such as cryptocurrencies, given that they limit the amount of liquidity available for investing in this sector.

Crypto Price Today: Altcoins Track Bitcoin Weakness

In broader cryptocurrency markets, altcoin prices fell on Wednesday, tracking Bitcoin’s weakness.

The world’s No. 2 cryptocurrency fell 1.4% to $2,610.01, with the coin expected to see increased volatility this week with the expiration of around $1 billion in ether options.

and dropped from 0.4% to 3%, while among meme tokens it dropped by 4.7%.