Bitcoin drops ahead of US elections; DOGE, ENA, and XMR lead gains

Bitcoin continued to face pre-election jitters, while the top altcoins barely held onto single-digit gains amidst the day’s volatility.

When writing this report, the overall cryptocurrency market capitalization had fallen roughly 1% from the day before, at $2.39 Trillion.

Crypto fear and greed index, which indicates the current market sentiment dropped to 70, from 74, suggesting that market confidence was waning.

BTC has been on a steady decline since almost retesting its all-time high price of $73,25 on Oct 30 and had pulled back to an intraday low of $67,719 during the early trading hours on Monday. 

While it is not uncommon for volatility to surge ahead of major macroeconomic events like the United States election, the flagship crypto’s drop was intensified as uncertainty over who’d be leading the next administration spooked short-term traders.

Notably, Bitcoin’s rally over the past months was fuelled by growing odds of crypto-friendly candidate Donald Trump’s potential victory s investors anticipate his administration might pursue pro-crypto policies and lighter regulatory oversight.

However, as election day drew closer, the lead between Trump and his competitor, Vice President Kamala Harris, narrowed from 66%-34% in late October to 59%-41% on Polymarket early Monday. Similar trends appeared on other polling platforms.

A Trump win has been touted by several industry experts as the next major catalyst that could push the leading crypto to new heights.

Conversely, one trend suggests Bitcoin could rally regardless of the election outcome. Several analysts have pointed out that in each of the last three election years, Bitcoin’s price has consistently rallied in the months following the election, never dropping below its election-day price.

On a similar note, some experts speculate that the next administration, whether Republican or Democrat, is expected to be more accommodating toward the crypto sector. As such, election results wouldn’t invalidate Bitcoin’s goal of hitting a new all-time high.

Meanwhile, other factors, such as upcoming economic data—including the initial jobless claims report on Nov. 7—and the Federal Open Market Committee meeting on Nov. 6-7, which will determine if a rate cut is forthcoming, are also expected to affect Bitcoin’s price in the coming weeks.

With just a few more hours left till the election, some price predictions have surfaced on X.

According to popular crypto analyst Daan Crypto Trades, BTC could move 10% in either direction depending on who wins the election.

Crypto analyst Lucky joined experts at banking giant Standard Chartered in speculating that BTC would surpass $100,000 in the event of a Trump victory.

Fellow trader Miles Deutscher, with over 552k followers, expects the $100k price target to be hit irrespective of who wins but added that if Trump takes office, the price target would be higher.

If Harris steals the show, the analyst expects a short-term price dump, followed by a new all-time high hit during Q1 2025.

At the time of writing, BTC was trading at $68,556, marking a minimal increase of just 0.1% from the previous day.

With Bitcoin still dominating the market, the altcoins with the most profits for the day were:

Dogecoin

Dogecoin (DOGE) rose 8% over the past day, exchanging hands at $0.1585 when writing. The meme coin’s market cap stood at $23.25 billion while the token recorded a daily trading volume of $2.64 billion up 24.2% over the previous day.

Source: CoinMarketCap

Analysts have noted that DOGE has broken out from a falling wedge pattern in the monthly chart signalling a significant upside for the token over the coming months.

Technical analyst Al observed that Dogecoin is increasingly being adopted by traders with over 35000 news addresses being created daily.

The rise in DOGE adoption means the token is growing in popularity as more investors are looking to capitalize on meme coins which have outperformed other utility-based altcoins this season.  

US elections also played a part in fuelling the DOGE rally as Tesla CEO Elon Musk, is expected to lead the Department of Government Efficiency if Trump wins.

Musk is an avid supporter of Dogecoin and is also known to hold the meme coin.

Ethena

Ethena (ENA) traders managed to secure modest profits as the altcoin rose 7.1%, trading at $0.349 at press time.

The token reached an intraday high of $0.355 during early trading hours, but bulls struggled to maintain levels above the $0.35 support, a key level in recent weeks.

Source: CoinMarketCap

ENA’s gains mostly came as a recovery rally for the altcoin after allegations surfaced last week that the project’s team was misusing 180 million Ethena tokens, diluting rewards for other users in a recent farming event.

However, the sentiment has improved since the project dispelled those claims.

Subsequently, USDe, minted and managed by the Ethena protocol, was recently introduced as a collateral option for perpetual trading on the decentralized crypto platform Kwenta, adding another layer of positivity that has fueled ENA’s recent rally.

Monero

Monero (XMR), the privacy-focused altcoin that was recently delisted from multiple exchanges rose 3.8% in the past 24 hours bringing its market cap up to nearly $3 billion.

Source: CoinMarketCap

The price surge in XMR came as p2p marketplace Noones App listed the token which rejuvenated trader confidence in the altcoin which had been delisted from several centralized exchanges over the past months.

Meanwhile, analysts have observed XMR developing an ascending triangle pattern on the 4-hour chart, which has traders hoping that a rally is due as a breakout from this pattern usually translates to a price rally. 

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