Bitcoin has witnessed some significant price re-correction following a prolonged price rally in October during which it gained by 20%. The price of the premier cryptocurrency initially dropped from above $73,000 on Friday finding support around the $69,000 region.
Bitcoin (BTC) price crashed below the key level of $69,000 on Sunday, leading to a large wave of market liquidations. Notably, several analysts have also observed a correlation between this BTC price decline and a decrease in the winning odds of Republican presidential candidate Donald Trump ahead of the general elections.
Bitcoin Price Drop Sparks $232.6 Million In Liquidations
In recent days, Bitcoin has experienced a substantial price re-correction after a prolonged price rally in October, during which it gained over 20%. The premier cryptocurrency’s price initially dropped from above $73,000 on Friday, finding support around the $69,000 zone.
After a brief period of sideways movement, BTC underwent another significant decline on Sunday, reaching a local bottom of $67,960. During this price drop, crypto analyst Ali Martinez observed that 104,787 trading positions were liquidated, resulting in a total loss of $232.6 million.
According to Martinez’s data, longs accounted for the majority of these liquidations, with $198.6 million, while only $34 million in shorts were closed. This indicates that more traders were expecting a rebound by the leading cryptocurrency after its initial price pullback on Friday.
At the time of writing, Bitcoin has retraced to above $68,000, with its next price move remaining unclear. If the current downtrend continues, the premier cryptocurrency could fall as low as $55,000, continuing a range-bound movement that has lasted over the past eight months.
Alternatively, BTC could experience a price recovery, returning to levels within its all-time high at $73,750, as bullish sentiment remains on the high amid increased ETF inflows, the fast-approaching US election, and an anticipated 25-basis-point rate cut by the Fed.
Is A Potential Trump Loss A Threat To Bitcoin?
Interestingly, Bitcoin’s decline on Sunday has also been linked to a decrease in the winning probability of US presidential candidate and crypto advocate Donald Trump. According to data from Polymarket, Trump’s chances of winning the presidential election on November 5 dropped by 4.3%, while his opponent, Democrat candidate and US Vice President Kamala Harris, became the favorite to win in Pennsylvania.
Although pro-crypto Donald Trump remains the frontrunner to become president with a 53.8% chance versus Harris’s 46.1%, recent price reactions by Bitcoin have shown that a potential loss by the Republican could lead to a significant price decline for the leading cryptocurrency. However, historical price data suggests that such a downturn would likely be short-lived, as BTC has always embarked on a bullish trajectory following the US elections, irrespective of the outcome.
At the time of writing, BTC trades at $68,471, reflecting a price decrease of 1.38% over the past 24 hours. The asset’s daily trading volume is down by 40.54% and now stands at $24.40 billion.
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