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He bitcoin-price-200-ma-break/” rel=”nofollow”>bitcoin price It briefly fell below $67,000 on October 21, although it quickly regained this level as support before the daily close. This price drop is believed to be due to its correlation with the stock market, which also experienced a drop of its own.
Why bitcoin Price Dropped Below $67,000
bitcoin price fell below $67,000 mainly thanks to its correlation with the US stock market. IntoTheBlock Data shows that the correlation between the flagship cryptocurrency and the S&P 500 is currently at 0.63, indicating a strong positive price correlation. The S&P 500 Index and the Dow fell from their all-time highs on Oct. 21 ahead of the earnings reports.
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The stock market crash and bitcoin price drop They are believed to be driven by uncertainty in the macroeconomic environment. This market uncertainty arises from rising inflation expectations and concerns about how public spending is contributing to this development. As such, market participants are currently cautious about their next move, with some waiting to see what steps they will take. US Federal Reserve will take to keep inflation within its 2% target.
He crypto-influence-on-2024-us-presidential-election-bigger-than-expected-survey-finds/” rel=”nofollow”>upcoming US elections It has also contributed to market uncertainty, especially now that the presidential race between Donald Trump and Kamala Harris appears to be close. It is not uncommon for traders to wait on the sidelines until after the election to be certain about the market's prospects under the new president.
Other factors contributing to the price drop
bitcoin-levels-show-potential-for-bullish-trend/” rel=”nofollow”>Analyst Justin Bennett cited “open interest (OI) at July highs, whales trimming long positions, and last week's criminal-driven rally” as other factors that contributed to bitcoin's price decline. He claimed that these factors, along with the upcoming US elections, are what caused the price drop.
Regarding the impact of the US elections, the analyst x.com/JustinBennettFX/status/1848352751559811088″ rel=”nofollow”>noted that markets typically reduce risk ahead of the US presidential election, which is now thirteen days away. He commented that it would have been a “calamity” if the markets had not reduced their risks early and continued pumping until election night.
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Bennett made this statement and noted why he had anticipated a pullback for bitcoin and other crypto assets. In fact, the analyst has been claiming since last week that the flagship cryptocurrency would soon experience a price correction. He had previously mentioned that he would not be surprised if the btc price corrected to bitcoin-drops-below-63000-are-geopolitical-issues/” rel=”nofollow”>around $63,000.
In a more recent x.com/JustinBennettFX/status/1848550876299817184″ rel=”nofollow”>x publicationhighlighted the $65,800 range as the first test for bitcoin price. Holding above this level could invalidate your trading setup.
At the time of writing, bitcoin price is trading at around $67,700, down almost 2% in the last 24 hours, according to bitcoin/” rel=”nofollow”>data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
