bitcoin (btc) plummeted below $69,000 on Sunday, sparking significant levels of sell-offs in the market. Interestingly, analysts have also noted a correlation of this drop with a decline in US Republican presidential candidate Donald Trump's chances of winning ahead of the November 5 general election.
The fall in the price of bitcoin induces liquidations of 232.6 million dollars
In recent days, bitcoin has witnessed a major price correction following a prolonged price rally in October during which it gained 20%. The price of the leading cryptocurrency initially fell from over $73,000 on Friday and found support around the $69,000 region.
After a brief period of sideways movement, btc saw another significant drop on Sunday reaching a local low of $67,960. Amid this price drop, crypto analyst Ali Martínez noted that all 104,787 trading positions were liquidated, resulting in a loss of $232.6 million.
x.com/ali_charts/status/1852957206745911757″ target=”_blank” rel=”noopener nofollow”>Data shared by Martínez showed that long traders accounted for the majority of these figures with $198.6 million in liquidations, while only $34 million in short positions were closed. This development means that more traders had anticipated a rally by the cryptocurrency market leader following its initial price pullback on Friday.
At the time of writing, bitcoin has retreated to over $68,000 with little sign of its next price move. If its current bearish trend persists, the leading cryptocurrency could fall as low as $55,000, in line with a range-bound move that has lasted for the past eight months.
Alternatively, bitcoin could see a price recovery returning to levels within its all-time high of $73,750 as bullish sentiments remain high amid higher ETF inflows, a fast-approaching US election, and an early cut. of the Fed rate of 25 basis points.
Is a possible Trump loss a threat to bitcoin?
So far, bitcoin's decline on Sunday has found a correlation with a decrease in the probability of winning for US presidential candidate and crypto activist Donald Trump. According x.com/Polymarket/status/1852859798368174278″ target=”_blank” rel=”noopener nofollow”>polymer dataTrump's chances of emerging victorious in the November 5 presidential election fell 4.3% after his opponent, Democratic candidate and US Vice President Kamala Harris, became the favorite to win in Pennsylvania.
Although he The pro-crypto Donald Trump remains the precursor to emerge as president with 53.8% compared to Harris' 46.1%; Recent bitcoin price reactions have shown that a potential loss by the Republican could exert a significant price drop for the cryptocurrency market leader. Although historical price data x.com/Ashcryptoreal/status/1852614944602128395″ target=”_blank” rel=”noopener nofollow”>indicates That such a slowdown would likely be temporary, as bitcoin has steadily embarked on an upward trajectory following the US election, regardless of the outcome.
At the time of writing, btc is now trading at $68,471, reflecting a 1.38% price loss in the last 24 hours. Meanwhile, the asset's daily trading volume has decreased by 40.54% and is valued at $24.40 billion.
Featured image from Yahoo Finance, chart from Tradingview
