Bitcoin Price Drop Triggers Significant Market Liquidations Amidst US Election Uncertainty

Bitcoin’s Price Correction Leads to $232.6 Million in Liquidations

Bitcoin saw a sharp decline below $69,000, causing a wave of market liquidations totaling $232.6 million. The cryptocurrency initially fell from above $73,000 to find support around $69,000, followed by another significant drop to $67,960 on Sunday.

Long Traders Hit the Hardest

The majority of the liquidations were from long positions, totaling $198.6 million, compared to $34 million from short positions. This suggests that traders were expecting a rebound from Bitcoin following its initial price pullback.

Currently, Bitcoin is trading above $68,000 with uncertain short-term price direction. It could either fall to $55,000 or return to its all-time high of $73,750, fueled by positive market sentiment and upcoming events like the US election and potential Fed rate cut.

The Impact of US Election Odds on Bitcoin

Bitcoin’s recent price decline appears to correlate with a decrease in US presidential candidate Donald Trump’s winning odds. Trump’s chances dropped by 4.3% as his opponent, Kamala Harris, gained favor in Pennsylvania. Although Trump remains the favorite, a potential loss could lead to a significant price dip for Bitcoin.

Despite short-term fluctuations, historical data suggests that Bitcoin tends to recover post-election regardless of the outcome. Currently trading at $68,471, Bitcoin reflects a 1.38% loss in the past 24 hours with a 40.54% decrease in daily trading volume ($24.40 billion).

Looking Ahead

As Bitcoin’s price remains uncertain amidst market volatility and election speculation, investors are advised to closely monitor developments and trends in the coming days.