Bitcoin (BTC) took a dive below $69,000 on Sunday, causing a major shakeup in the market. This sudden drop resulted in over $200 million in liquidations, where traders lost their investments due to the price decline.
A Big Dip, Big Losses
Over the past few days, Bitcoin has been on a rollercoaster ride. After a strong climb in October, it experienced a correction, dropping from over $73,000. This dip continued on Sunday, reaching a low of $67,960.
This price drop triggered a wave of liquidations, with over 100,000 trading positions getting wiped out. This resulted in a whopping $232.6 million in losses, with long traders (those who bet on the price going up) bearing the brunt of the losses.
Is Trump’s Election Odds Impacting Bitcoin?
Interestingly, analysts have noticed a connection between Bitcoin’s decline and the decreasing chances of Donald Trump winning the US presidential election. As his opponent, Kamala Harris, gained ground in the polls, Bitcoin’s price took a hit.
While Trump is still considered the favorite to win, a potential loss could lead to a significant price drop for Bitcoin. However, historical data suggests that any downturn would likely be temporary, as Bitcoin has generally performed well after US elections, regardless of the outcome.
What’s Next for Bitcoin?
Bitcoin is currently trading above $68,000. It’s unclear what direction it will take next. If the current downtrend continues, it could fall as low as $55,000. However, there’s also a possibility of a price recovery, pushing it back towards its all-time high of $73,750.
With factors like ETF inflows, the upcoming US election, and potential interest rate cuts, the future of Bitcoin remains uncertain.
