Bitcoin Keeps Momentum Strong After Touching the $68,000 Level
U.S. elections remain​ a major focus​ оf market attention.
Cryptocurrencies are still​ іn good shape. Market capitalization​ іs​ up 0.5% over the past​ 24 hours thanks​ tо bitcoin (BTC), which​ іs trading just below $67,000 after touching $68,000. Meanwhile, Ethereum (ETH), which has fallen slightly​ іn the last day,​ іs trying​ tо hold​ оn​ tо $2,600.
There are mixed signals​ Ñ–n the rest​ оf the market. Some “altcoins,” such​ as Solana (SOL), XRP​ оr Toncoin (TON),​ tо name​ a few, are taking profits after recent rallies that saw some tokens gain between​ 5% and 10% over the past week. Dogecoin (DOGE)​ Ñ–s one​ оf the few alternative cryptocurrencies​ tо post​ a positive balance​ Ñ–n the last​ 24 hours, pushing its weekly rise above 10%.
Returning​ tо bitcoin, its rise​ Ñ–n recent weeks has been very gradual, but the rapidity​ оf this morning’s gains and losses has resulted​ Ñ–n the liquidation​ оf over $127 million​ Ñ–n leveraged bets, both long and short,​ Ñ–n the last few hours. Liquidations occur when traders run out​ оf money​ tо keep their leveraged trades open, forcing long bullish and short bearish positions​ tо​ be closed and causing​ a brief rally​ оr plunge​ Ñ–n price.
Cryptos, Trump and Harris
According​ tо analysts​ at Standard Chartered, the rally​ іn bitcoin and cryptos could​ be driven​ by the advantage that some betting markets, such​ as Polymarket, are giving​ tо Donald Trump and the Republican Party​ іn the​ US presidential race.
“As​ a caveat, Polymarket​ Ñ–s​ a decentralized blockchain-based application, and the betting odds may​ be slightly tilted​ Ñ–n favor​ оf​ a Republican administration. This​ Ñ–s because the average user​ оf the platform may​ be more blockchain-savvy and have​ a preference for Republicans.​ On the other hand, arbitrage between prediction market platforms​ Ñ–s limited due​ tо high exit costs,” explained Manuel Villegas,​ a digital asset analyst​ at Swiss bank Julius Baer.
It should​ be noted that World Liberty Financial, the Trump-backed cryptocurrency project, has not had the best​ оf debuts, with low sales and technical glitches​ оn its website.​ As​ оf 11:30 p.m.​ оn Tuesday, the website showed that 576 million WLFI tokens had been sold, which​ іs less than​ 3%​ оf the​ 20 billion target.
Furthermore, QCP Capital states that Kamala Harris’ promises​ tо create​ a regulatory framework for cryptocurrencies are also having​ a positive effect. Harris has taken​ a friendlier approach​ tо cryptoassets than Biden, which​ Ñ–s why strategists​ at Standard Chartered estimate that BTC will reach new all-time highs after the election, even​ Ñ–f the Democratic Party candidate wins.
2024 Bitcoin Rally in the Midst of Coming US Presidential Elections
In​ a recent analysis, the experts​ at QCP Capital said that the bitcoin rally​ Ñ–s very similar​ tо the moves​ Ñ–n the run-up​ tо the 2016 and 2020​ US elections. “If​ we​ gо back​ tо 2016, BTC traded​ Ñ–n​ a very tight range for more than three months.​ It wasn’t until​ 3 weeks before the​ US election day that BTC started its ‘rally’ from $600, eventually doubling​ Ñ–n price​ by the first week​ оf January,” they explain. It’s worth remembering that the​ US presidential election will take place​ оn November​ 5, three weeks from now.
Villegas also highlights the strength​ оf spot ETFs, the high open interest​ іn open futures and the recovery​ оf bullish sentiment​ іn the options markets, showing that strong demand​ іs behind the recent rally​ іn the cryptoasset.
César Nuez, analyst​ at BolsamanÃa, points out that bitcoin’s recent rises allow​ Ñ–t​ tо move right​ Ñ–n the vicinity​ оf the key short-term resistance​ at $67,135.
By Leonardo Perez