Bitcoin Dips as Polymarket Predicts a Decisive Zohran Mamdani Victory

The prediction market has assigned Zohran Mamdani a 93% probability of becoming New York City’s next mayor.

Bitcoin Slips as Traders Fret Over Potential Mamdani Win

Democratic socialist Zohran Mamdani will likely be New York City’s next mayor according to Polymarket, and bitcoin traders don’t seem too pleased by it. The 34-year-old Ugandan-born New Yorker has promised higher taxes and a $30 minimum wage, policies seen as hostile to both corporations and the wealthy. Bitcoin began its descent overnight, bottoming out at $105K before climbing back to $107K, as the reality of an all but guaranteed Mamdani victory sank in.

(Mamdani has led the polls since June, but with election day less than 24 hours away on Tuesday, the reality of a socialist mayor in New York City seems to have sunk in and spooked traders. / Polymarket) Mamdani rose to prominence in June 2025 after upsetting heavy favorite and former New York state governor Andrew Cuomo in the Democratic Party primary. Cuomo, a seasoned politician and lawyer, was attempting a comeback after resigning from the governorship in 2021 following a scandal involving sexual harassment allegations. Despite his defeat in the primary, the 67-year-old Queens native decided to run against Mamdani as an independent.

But things are not going well for Cuomo according to prediction markets such as Polymarket and Kalshi. Both show Mamdani with an extensive lead, and barring a political miracle, the young socialist Muslim and hip-hop artist is likely to hand Cuomo his second defeat in six months come election day on Tuesday.

Mamdani has promised socialist-style reforms such as government-owned grocery stores, rent freezes, and even free public transit. All this in the very city that controls the underpinnings of global capitalism. It’s not clear if Mamdani will follow through with his socialist policies, but markets will likely see his victory as a loss for the corporate world, which may partly explain bitcoin’s price action today.

“I don’t think we should have billionaires,” Mamdani said during an interview with NBC. “Because, frankly, it is so much money in a moment of such inequality, and ultimately, what we need more of is equality across our city and across our state and across our country.”

Overview of Market Metrics

Bitcoin was trading at $106,963.59 at the time of reporting, a 2.87% decline over 24 hours and a 7.01% retreat since last week, Coinmarketcap data shows. The cryptocurrency’s price range fluctuated between $105,336.36 and $110,764.92 since yesterday.

( Bitcoin price / Trading View) Twenty-four-hour trading volume jumped noticeably by 104.22% to $68.24 billion, which is significant even if the expected post-weekend surge is accounted for. But the large increase appears to have been primarily caused by unusually low volume on Sunday. Bitcoins total market capitalization fell alongside price to $2.13 trillion, but bitcoin dominance surged to 60.70%, an uncharacteristic 1.26% jump. The large shift hints at a struggling altcoin market.

( Bitcoin dominance / Trading View) Total value of bitcoin futures open interest fell 0.48% to $70.02 billion, according to Coinglass. Liquidations climbed to a grand sum of $315.90 million, dominated by $298.34 million in losses from long investors who were caught off guard by the current price decline. The remaining liquidations came from overzealous short sellers who lost $17.56 million in liquidated margin.

FAQ ⚡

• Why did Bitcoin drop below $107K?

Traders reacted to Polymarket’s 93% odds of a Zohran Mamdani victory, viewing his socialist agenda as market-unfriendly.

• Who is Zohran Mamdani?

A Ugandan-born 34-year-old Democratic socialist from Manhattan, he’s campaigning for NYC mayor on higher taxes, rent freezes, and free public transit.

• How are prediction markets positioning?

Both Polymarket and Kalshi show Mamdani with a decisive lead over independent challenger Andrew Cuomo.

• What does this mean for investors?

A Mamdani win could spark short-term risk aversion in crypto and finance sectors tied to New York’s economy.