Bitcoin (BTC) collapsed below $69,000 on Sunday resulting in significant levels of market liquidations. Interestingly, analysts have also noted a correlation between this decline and lower odds of US Republican presidential candidate Donald Trump winning ahead of the general election on November 5.
The decline in Bitcoin prices led to liquidations worth $232.6 million
In the past few days, Bitcoin has seen some significant re-correction in prices after a prolonged price rally in October during which it rose by 20%. The price of the leading cryptocurrency initially fell from over $73,000 on Friday and found support around the $69,000 area.
After a brief period of sideways movement, Bitcoin saw another significant decline on Sunday to hit a local low of $67,960. Amid this price drop, cryptocurrency analyst Ali Martinez noted that 104,787 trading positions were liquidated resulting in a loss of $232.6 million.
Data shared by Martinez It showed that long-term traders accounted for the majority of these numbers with $198.6 million in liquidations while only $34 million in short positions were closed. This development means that more traders are anticipating a rebound by the cryptocurrency market leader following its initial price decline on Friday.
At the time of writing, Bitcoin has fallen to over $68,000 with little sign of the next price movement. If its current downtrend continues, the flagship cryptocurrency could fall to as low as $55,000 in line with a range-bound move that has continued over the past eight months.
Alternatively, Bitcoin could see a price rebound and return to levels within the all-time highs at $73,750, as bullish sentiment remains at the highest level amid increasing ETF inflows, the rapidly approaching US elections, and an expected Fed rate cut. By 25 basis points.
Does Trump’s potential loss pose a threat to Bitcoin?
So far, Bitcoin’s decline on Sunday has found a correlation with a lower probability of victory for US presidential candidate and cryptocurrency activist Donald Trump. according to Data from PolymarketTrump’s chances of emerging victorious in the presidential elections scheduled for next November 5 declined by 4.3% after his rival, Democratic candidate and US Vice President Kamala Harris, became the most likely to win in the state of Pennsylvania.
in spite of Cryptocurrency supporter Donald Trump remains the leader emerging as president with 53.8% to Harris’ 46.1%, and recent price reactions by Bitcoin have shown that a potential loss by the Republican could lead to a significant price drop for the cryptocurrency market leader. Although historical price data Pointing Such a downturn is likely to be temporary as Bitcoin has consistently embarked on an upward trajectory following the US elections regardless of the outcome.
At the time of writing, Bitcoin is now trading at $68,471, reflecting a 1.38% price loss over the past 24 hours. At the same time, the daily trading volume of the asset decreased by 40.54% and reached $24.40 billion.
Featured image from Yahoo Finance, chart from Tradingview