Bitcoin (BTC) climbed 0.7% on Tuesday as US equities held steady despite uncertainty surrounding the US midterm elections. Analysts at The Kobeissi Letter suggested markets were factoring in two years of political gridlock, anticipating Democratic gains in the elections. Meanwhile, WTI crude oil dropped to $93.59 per barrel, its lowest level since October 15, despite recent US strikes on Iran’s Qeshm Island.
BTCUSD hovered around $77,000, maintaining local lows near $76,300 seen on Friday. Stocks faced mixed pressures, with Apple shares attempting to recover after a 4% premarket drop due to lower gross margin forecasts for the December quarter. The S&P 500 and Nasdaq Composite Index ended Monday down 0.5% and 1.1%, respectively.
Tobin Marcus, head of US policy and politics at Wolfe Research, noted skepticism about Democratic gains, suggesting polls might overstate their strength. Analysts argued that political uncertainty, rather than AI spending concerns, was driving market weakness, with a divided Congress potentially leading to legislative impasses.
Oil prices remained stable despite a US attack on Iran’s Qeshm Island, a critical outpost for the Strait of Hormuz oil route. WTI crude initially spiked to $98.80 per barrel before falling below $94 on Tuesday, marking its lowest level since October 15.