Bloomberg: Bitcoin Falls on Mt. Gox, Government, Miner Selloff, While Potential Fed Policy Shift Would Reverse Sentiment

In response to the new market decline, Richard Galvin, co-founder of hedge fund Digital Asset Capital Management, said, "One factor is the possibility of a stronger Democratic candidate replacing Biden, who may not support cryptocurrencies. In the short term, a bigger reason for Bitcoin's weakness is the sell-off from Mt. Gox and the selling behavior of government addresses."

Additionally, Noelle Acheson, author of Crypto Is Macro Now, noted that "Bitcoin continues to struggle with selling pressure from miners."
However, sentiment in the cryptocurrency market could shift quickly if weak U.S. economic data spurs bets on the Federal Reserve easing monetary policy, and the approval of an Ether Spot ETF for listing could also boost sentiment.

Interpretations of political developments in the U.S. could also change, with Matt Hougan, chief investment officer at Bitwise Asset Management, suggesting that a potential turnover in Democratic candidates "is more likely to put crypto in a better position to address it. He says the government's attitude toward digital assets has generally improved over the past year.