Dogecoin (DOGE) was the standout performer among major cryptocurrencies ahead of the U.S. elections, showing a 10% increase over the last 24 hours, while Bitcoin (BTC) saw a decline of nearly 3%. In contrast, other major cryptocurrencies also faced losses ranging from 1% to 5%.

Market Movement

The CoinDesk 20 index, which tracks the performance of the largest cryptocurrencies by market capitalization, dropped 3%. Notably, DOGE's recent appreciation is largely due to renewed backing from Elon Musk, who has proposed the creation of a 'Department of Government Efficiency', abbreviated as D.O.G.E, indicating his support for the cryptocurrency.

Bitcoin's Decline

In other news, Bitcoin's price experienced pressure as the defunct exchange Mt. Gox transitioned $2.2 billion worth of tokens to new wallets, a move historically associated with creditor repayments that often impacts market prices negatively.

ETF Outflows

Furthermore, U.S.-listed Bitcoin ETFs recorded significant outflows on Monday, totaling $541 million, marking the highest withdrawals since May and diminishing hopes for renewed institutional interest. BlackRock's IBIT remained an exception with inflows of $38 million, while major funds like Fidelity's FBTC, Ark Invest's ARKB, and Grayscale's mini Bitcoin trust were not as fortunate, seeing net outflows exceeding $150 million.

Conclusion

Traders attribute the current market correction to shifting election poll standings, demonstrating decreased confidence in Donald Trump's victory, which is deemed crucial for crypto interests.

"Markets are falling because traders are no longer confident that Trump will have an 'easy' victory on Tuesday, and that doesn't bode well for crypto as he’s been perceived as the more pro-crypto candidate," said Jeff Mei from BTSE.

As the election draws near, market fluctuations are expected to continue, driven by external political factors and economic indicators.