The world’s biggest cryptocurrency fell 0.5% to $67,161.7 by 01:02 ET (05:02 GMT) after largely failing to break past $70,000 earlier this week.
Declines in global stock markets also signaled that risk appetite remained weak, while the upcoming expiry of about $4 billion in Bitcoin options is expected to increase crypto market volatility in the coming days.
Recent polls and online prediction markets showed Republican nominee Donald Trump gaining an edge over Democratic candidate Kamala Harris in the 2024 presidential election.
But the race was still seen as too tight to call, especially with about two weeks left to the ballot.
While increased optimism over a Trump presidency had initially boosted crypto prices, this enthusiasm now appeared to be fading, especially as the elections drew closer.
Trump has maintained a pro-crypto stance, promising to roll out crypto-friendly regulation if elected. Harris also recently pledged to a crypto regulatory framework.
Crypto markets were also pressured by a stronger dollar, as growing expectations of a slower pace of interest rate cuts by the Federal Reserve pushed the dollar to near three-month highs.
Traders were seen pricing in a greater chance the Fed will cut rates by a smaller 25 basis points in November, and were also seen positioning for a higher terminal rate. This notion saw Treasury yields surge to near three-month highs, pressuring risk-driven assets.
Higher rates bode poorly for speculative assets like crypto, given that they limit the amount of liquidity available for investing in the sector.
Among broader crypto markets, altcoin prices fell on Wednesday, tracking weakness in Bitcoin.
World no.2 crypto Ether fell 1.4% to $2,610.01, with the coin also expected to see increased volatility this week with the expiry of about $1 billion in Ether options.
XRP, SOL, MATIC and ADA fell between 0.4% and 3%, while among meme tokens, DOGE slid 4.7%.
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