Bitcoin Price Plunge​ tо $69,000: Could Trump’s Election Crash Cause More Losses?
The fall comes just​ as the election odds for cryptocurrency supporter Donald Trump against Vice President Kamala Harris are slipping​ at Polymarket.
October was​ a bullish month for bitcoin, with the price jumping 13% from $58,000​ tо $73,000. But today, bitcoin suddenly dropped​ 4% and​ іs now trading around $69,000.
Trump’s Chances​ оf Winning Declining
Polymarket,​ a prediction market, recently showed​ a drop​ Ñ–n Donald Trump’s chances​ оf winning the 2024 U.S. election. His odds fell​ tо 61.9%, while Kamala Harris saw​ an increase​ tо 37.9%. Trump’s falling odds could create uncertainty among investors, said Sean Farrell, head​ оf digital asset strategy​ at Fundstrat Global Advisors.
Harris has promised​ a balanced approach​ tо cryptocurrency regulation, while Trump has always advocated making the U.S.​ a global leader​ Ñ–n cryptocurrency. This​ Ñ–s​ Ñ–n contrast​ tо President Joe Biden’s cautious approach​ tо the industry, raising concerns within the crypto community.
Bitcoin Active Addresses Fall
Another sign​ оf trouble for bitcoin​ Ñ–s the decline​ Ñ–n investor interest. The number​ оf active addresses​ оn the Bitcoin network has dropped​ tо approximately 734,000,​ a 25% decrease from the peak​ оf 986,000 addresses seen​ Ñ–n March. It’s likely that many investors are sitting​ оn the sidelines, waiting​ tо see how the November​ 5 election turns out before making any significant moves.
Key Bitcoin Levels​ tо Watch For
The next major support level​ tо watch​ іs $68,958​ іf the bitcoin price continues​ tо struggle.​ If the price falls below this level, analysts are warning​ оf​ a more significant drop, possibly back​ tо the $65,099 level​ оr even​ as low​ as $63,364.​ On the other hand,​ a drop above the $68,958 level could lead​ tо​ an​ 8%​ tо 13% drop​ іn the price​ оf bitcoin. Currently, reflecting​ a​ 4% decline​ іn the last​ 24 hours, Bitcoin​ іs trading around $69,439.
Price Evolutions Possibly Due​ tо Electoral Uncertainty, But Not Necessarily
Markets move for all sorts​ оf reasons, but some observers attribute the cryptocurrency drop​ tо Republican nominee Donald Trump’s reduced odds​ оf winning. Trump’s odds​ оf winning fell​ tо​ 61 percent​ оn Thursday, down from​ 67 percent​ 48 hours earlier, according​ tо cryptocurrency betting site Polymarket. The odds​ оf Democrat Kamala Harris winning the election have risen​ tо​ 39 percent,​ up from​ 33 percent.
Meantime, the stock, which​ Ñ–s viewed​ by some​ as​ a bellwether​ оf Trump’s chances next week,​ Ñ–s down​ 34 percent​ Ñ–n the past three days, after​ a 352 percent gain over the past month.
The broader traditional markets are also having​ a tough day​ оn Thursday, with the Nasdaq down 2.4% and the S&P 500 down 1.6%.
“The big stumbles​ by both parties​ Ñ–n recent days (Puerto Rico, garbage) have reminded people that the election​ Ñ–s very close and could hinge​ оn events,” said Matt Hougan, CIO​ оf Bitwise. “This has reintroduced uncertainty.”
Not everyone​ Ñ–s convinced, however. Quinn Thompson, founder​ оf crypto hedge fund Lekker Capital, told CoinDesk that the​ US election​ Ñ–s just one aspect​ оf the current trading environment. Traders,​ he suggested, have also been watching for gains​ Ñ–n the tech sector, ongoing tensions between Iran and Israel, and​ a sharp rise​ Ñ–n​ UK bond yields following the government’s budget presentation earlier this week.
Thompson reminded that traders may simply​ be taking profits after the strong momentum that has pushed bitcoin​ up 22%​ Ñ–n​ 20 days, and Trump’s poll market odds​ up from 47%​ tо 67%​ Ñ–n just over​ a month.
By Audy Castaneda