Bitcoin (BTC) crashed below $69,000 on Sunday leading to significant market closing levels. Interestingly, analysts also noted the correlation of this decrease with the decrease in the chances of winning the US Republican presidential candidate Donald Trump before the general election on November 5.
Bitcoin Price Fall Creates $232.6 Million In Liquidations
In the past few days, Bitcoin has seen a significant price correction following the long price rally in October where it gained 20%. The price of the first cryptocurrency dropped from above $73,000 on Friday finding support in the $69,000 area.
After a short period of sideways movement, BTC experienced another significant decline on Sunday reaching the bottom of the $67,960 area. During this price drop, crypto analyst Ali Martinez noted that 104,787 trading positions were liquidated resulting in a loss of $232.6 million.
Data shared by Martinez showed that long traders accounted for most of these figures with $198.6 million in liquidation while only $34 million in short positions were closed. This development means that many traders were expecting a repeat of the crypto market leader following the initial price pullback on Friday.
At the time of writing, Bitcoin is back above $68,000 with little indication of its next price move. If its current decline continues, the main cryptocurrency may fall to $55,000 in line with the bound movement that has lasted for the past eight months.
Alternatively, Bitcoin may experience a price recovery back to its mid-highs above the $73,750 level as bullish sentiment remains high amid rising ETF revenues, the fast-approaching US election, and an expected Fed rate cut by a few percentage points there are 25.
Is Trump’s Possible Loss a Threat to Bitcoin?
So far, the decline of Bitcoin on Sunday has found a correlation with the decreasing chances of winning the US presidential election and the crypto activist Donald Trump. According to data from Polymarket, Trump’s chances of winning the November 5 presidential election dropped by 4.3% after his Democratic rival and US Vice President Kamala Harris became the favorite to win in Pennsylvania.
Although the pro-crypto Donald Trump remains the frontrunner to emerge president with 53.8% to Harris’s 46.1%, the reaction to the recent price by Bitcoin have shown that the possible loss of the Republican may cause a significant drop in prices for the leader of the crypto market. However, historical price data shows that such a decline is likely to be temporary as Bitcoin has consistently entered a bullish trajectory following the US election with no result.
At the time of writing, BTC is now trading at $68,471 showing a price loss of 1.38% in the last 24 hours. During that time, the daily trading volume of the commodity decreased by 40.54% and has a value of 24.40 billion dollars.
Featured image from Yahoo Finance, chart from Tradingview
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