Bitcoin, stocks drop as markets uncertain about US election result

The price of Bitcoin (BTC) suddenly fell by 3% within hours on Nov. 4 to $13,566 after briefly rising above $14,000. Coincidentally, the U.S. dollar, gold and stocks all fell together in tandem.

Analysts are pointing to uncertainty surrounding the election as the catalyst for the sharp correction.

Bitcoin 1-hour chart. Source: TradingView.com

Why markets fell after surging during the vote count

When the mainstream media was actively reporting the vote count, the price of Bitcoin and stocks rallied. Yet, after the vote count ended for the day, all risk-on and risk-off assets went into the red, including S&P 500 futures.

Tracy Alloway, a financial journalist at Bloomberg and co-host of the Odd Lots podcast, said this was a likely outcome due to President Donald Trump’s statement. She said:

“S&P 500 futures don’t like Trump’s suggestion that he’ll go to the supreme court to challenge election results. Now in the red.”

The recent drop of Bitcoin is noteworthy given that it dropped simultaneously with the dollar. Typically, when the dollar drops, Bitcoin and gold tend to rally, since both stores of value are priced against the dollar.