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Dogecoin’s price rise of about 10% is credited to a renewed backing from Elon Musk, amidst otherwise declining cryptocurrency values. Outflows were noted from US-listed bitcoin ETFs, with BlackRock’s IBIT being the only exception. Part of the crypto market reaction could be linked to Trump’s shrinking lead in election polls, potentially affecting pro-cryptocurrency sentiments.

Bitcoin value dropped on the transferal of $2.2 billion worth of tokens from Mt.Gox’s storage to new wallets, often indicative of creditor repayments. Furthermore, Monday saw a net outflow of $541 million from spot bitcoin ETFs listed in the US, the highest since May. Traders suggest this market change could be due to shifting election odds.

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Dogecoin’s price hike is largely due to a renewed backing from Elon Musk. He linked the cryptocurrency to his idea of a “Department of Government Efficiency” (D.O.G.E.). There were noticeable outflows from major US-listed bitcoin ETFs like Fidelity’s FBTC and Ark Invest’s ARKB, with the exception of inflows for BlackRock’s IBIT. Some traders suggest that the reaction in the crypto market might come from Donald Trump’s dwindling lead in the election polls. Traditionally, he’s seen as more supportive of cryptocurrencies.

Ahead of the closely-watched US elections, Dogecoin was the only primary token in the green. As a result, some are expecting a surge in the market over the next few weeks, no matter who wins the election. The meme-inspired currency has seen a boost of over 10% in the past 24 hours, even while bitcoin lost around 3%, and all other primary tokens recorded losses between 1%-5%.

The increase in DOGE prices over the past 30 days (of around 50%), can be attributed to a renewed endorsement from tech entrepreneur Elon Musk as part of the Republican campaign. Musk has been suggesting the creation of a Department of Government Efficiency (D.O.G.E) – which clearly references the coin. This agency aims to improve government spending and monetary planning.

Bitcoin took a hit when the now-defunct exchange Mt.Gox transferred $2.2 billion worth of tokens from its storage to new wallets. This sort of activity typically happens right before creditor repayments, and often results in prices dipping lower. Traders are expecting short-term selling pressure when the assets are moved further to exchanges.

In the US, spot bitcoin exchange-traded funds (ETFs) listed on Monday recorded $541 million in net outflows – the highest since May. This crushed hopes for increased interest from institutions in the asset, after a week that recorded consecutive days of net inflows above $800 million.

Surprisingly, BlackRock’s IBIT was the only product displaying net inflows at $38 million. The biggest outflows came from Fidelity’s FBTC at $169 million (the highest since it was launched) – followed by Ark Invest’s ARKB at $138 million and Grayscale’s mini bitcoin trust (BTC) at $90 million.

Traders suggest this market correction might be due to shifting election polls that have almost reached 50/50 odds on some platforms.

“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, COO at crypto exchange BTSE.

“On betting platforms such as Polymarket and Kalshi, his lead over Harris has diminished over the weekend. People think the result will be very close,” Mei added. He also mentioned that “the real clincher” could be a Fed rate cut decision on Thursday, where it’s expected that the agency will continue to cut rates. This move could “boost markets in the short run.”