BTC retreats, Gold continues rising

Rising odds of a Trump victory had been a major factor behind recent gains in cryptocurrency prices.

By Nadia Elbilassy | @Nadia Elbilassy | 22 October 2024

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  • Bitcoin fell 2.4%, retreating from recent highs as risk aversion hit markets ahead of the U.S. election.

  • A stronger dollar pressured crypto’s, while gold hit record highs on safe-haven demand.

  • Eight of 11 GICS sectors saw outflows, led by Technology, Financials, and Industrials

BTC

Bitcoin's price dropped on Tuesday, retreating from recent three-month highs as broader market risk aversion, fueled by anticipation of a tight U.S. presidential election.

Initial speculation of a Donald Trump victory had boosted crypto prices, but polls now indicating a close race between Trump and Vice President Kamala Harris have dampened risk appetite.

Additionally, a stronger U.S. dollar added to the pressure on cryptocurrencies, while safe-haven demand drove gold prices to record highs. Bitcoin fell 2.4%, reaching $67,412.5, after hitting a high of $69,000 but failing to break the $70,000 level, which many expected would signal a bullish trend.

Silver also continued to rally as prices hover near $34.43.

European stocks

European stocks dipped during a quiet trading week, as investors remained cautious amid subdued market activity.

However, Germany's SAP provided a boost to tech stocks with its strong outlook, allowing the country's main stock index to outperform the broader market downturn.

Bank of America

Bank of America Securities reported $3.7 billion in U.S. equity outflows last week, marking the second consecutive week of net selling. While clients sold individual stocks, they increased their purchases of exchange-traded funds (ETFs).

Hedge funds, institutional investors, and retail clients were all net sellers, with hedge funds and institutions selling for four straight weeks, and retail investors for two consecutive weeks.

Eight of the 11 GICS sectors saw outflows last week, with Technology, Financials, and Industrials facing the largest withdrawals. Technology in particular has experienced outflows in three of the past four weeks, even though semiconductor companies posted strong earnings reports during the same period.