Bitcoin dips to $70,300 as US election race heats up

Bitcoin's (CRYPTO:BTC) price briefly fell below $70,000 on Thursday after nearing a new all-time high earlier in the week.

The cryptocurrency had approached its previous record of $73,737, set in March, but faced a decline as traders reacted to a sell-off in U.S. equities.

This decrease coincided with a challenging day for the Nasdaq and S&P 500, which experienced their worst performance in a month following announcements from major tech firms like Meta and Microsoft regarding increased spending to meet rising AI demands.

Earlier in the week, Bitcoin had surged above $73,000, coming within $175 of setting a new all-time high.

The momentum seen earlier was part of a broader market rally that had crypto investors closely monitoring price movements.

In contrast to Bitcoin's performance, Ethereum (CRYPTO:ETH) saw a more significant decline, dropping 5.3% to around $2,500. 

Dogecoin also experienced a dip of 4.4%, falling to $0.16 after a notable rally earlier in the week.

The timing of Bitcoin's price movement also aligns with tightening dynamics in the U.S. presidential race.

A recent CNN poll indicated that Vice President Kamala Harris was slightly ahead of former President Donald Trump.

Trump has recently positioned himself as a pro-crypto candidate, while Harris has focused on broader discussions regarding cryptocurrency regulation and blockchain technology.

Analysts at JP Morgan noted that Bitcoin could gain upward momentum if Trump secures victory in the upcoming election. 

Overall, the interplay between cryptocurrency prices and political developments continues to draw attention from investors and analysts alike.

At the time of reporting, the Bitcoin (BTC) price was $70,089.37.