Investing.com-- Bitcoin price remained flat on Wednesday, steadying after incurring losses this week as weak risk appetite- amid uncertainty over the U.S. political outlook- kept traders averse towards crypto.
The launch of spot exchange-traded funds tracking Ether also did little to improve sentiment towards the sector, with Ether prices dropping on Tuesday and trading sideways on Wednesday.
Bitcoin stood nearly unchanged in the past 24 hours at $66,450.2 by 09:15 ET (13:15 GMT). The token had rebounded as far as $69,000 over the weekend, but was now steadily reversing course.
Bitcoin restricted amid political uncertainty, weak risk appetite
Bitcoin came under pressure from increased uncertainty over the U.S. presidential race, especially after President Joe Biden dropped his reelection bid and endorsed Vice President Kamala Harris.
Harris was seen swiftly gaining support in the Democratic party, and is now widely expected to be nominated as the party’s presidential candidate.
This sets her up for a showdown with Republican candidate Donald Trump, who, before Harris’ endorsement, was seen polling ahead of both Biden and Harris.
Expectations of a Trump presidency had fueled some gains in crypto, especially given that he has maintained a positive stance towards crypto in recent campaigning efforts. Trump is also set to speak at the Bitcoin Conference in Nashville this Saturday.
Still, Harris was seen polling ahead of Trump in a Reuters/Ipsos poll conducted just after her endorsement by Biden.
Spot Ether ETFs see strong volumes, but spark little price action
Six ETFs tied directly to the price of Ether began trading in U.S. markets on Tuesday, attracting trading volumes of over $1 billion in their first day of trade.
But they were at a fraction of the $4.6 billion traded during the debut of spot Bitcoin ETFs earlier this year.
Ether’s price also slipped 1% on Wednesday to $3,460.38.
While the launch of the spot Ether ETFs is expected to attract more institutional investors into crypto, it remains unclear just how much demand there actually is for the product.
Trading volumes in spot Bitcoin ETFs have also largely dwindled since their debut earlier this year.
Crypto price today: Altcoins tread water
Among broader crypto markets, major altcoins saw limited moves on Wednesday, as sentiment for risk-driven assets remained largely weak.
SOL and XRP rose 1.6% and 5.8%, respectively while ADA lost 0.1%.
Among meme tokens DOGE shed 0.5%, while SHIB added 1%.
Ferrari to launch its crypto payment system in Europe
In other related developments, Italian automotive giant Ferrari (NYSE:RACE) announced on Wednesday that it will expand its cryptocurrency payment option for luxury sports cars to its European dealer network starting at the end of this month.
The move follows the successful introduction of the scheme in the United States last year. By the end of 2024, Ferrari plans to extend this option to other international dealers in regions where cryptocurrencies are legally accepted.
While many blue-chip companies have avoided cryptocurrencies due to their volatility, Ferrari began accepting crypto payments in the U.S. to cater to requests from its affluent customers.
“The entry into the European market follows the successful launch of this alternative payment system in the United States less than a year ago, to support dealers in better addressing the evolving needs of its clients,” the company stated. Most dealers in Europe have either adopted or are in the process of adopting the new payment system.
For its U.S. launch, Ferrari partnered with BitPay, a leading cryptocurrency payment processor, enabling transactions in bitcoin, ether, and USDC, a major stablecoin. BitPay converts cryptocurrency payments into traditional currency on behalf of Ferrari’s dealers, shielding them from price fluctuations and excluding additional fees or surcharges for clients.
Ferrari did not specify whether it will use other payment processors in Europe or other regions. However, the company aims to support its dealers and address the evolving needs of its customers through this expanded payment scheme.