Is this why the price of Bitcoin lost $4,000 in 2 days?

Less than a week ago, the leading cryptocurrency climbed to $73,500 for the first time since the all-time high in March this year.

The landscape now looks completely different and the question of what has changed arises.

The chart above paints a clear and painful picture of BTC’s recent price movements. As mentioned above, it was $150 away from a new all-time high on Tuesday, but lost much of its momentum in the following days.

After falling below $69,000 on Friday, it rose to $71,600 later in the day. However, it has pulled back again and is currently struggling at $67,700, meaning it has lost around $4,000 since Friday evening.

Although the reasoning is not based on any certainty, the most obvious concerns the American presidential elections and the recent decline in the chances of Donald J. Trump.

The former president made a 180-degree turn when it came to the cryptocurrency industry and became a strong supporter, making numerous promises, such as allowing Bitcoin mining to flourish in the United States and even hinting at purchasing BTC for US reserves.

However, his chances of winning Tuesday’s elections have declined sharply in recent days. According to ElectionBettingOdds data, Trump lost 9.8% last week, most of which occurred since Friday. He is still in the lead, but only at 51.7% compared to 47.9% for Kamala Harris.

The blockchain-based Polymarket alternative shows an even more dire situation. Trump’s odds peaked at 66.9% on Wednesday to Harris’ 33.1%, but rose to 53.7% and 46.4%, respectively. This means that the Republican lost more than 13% in just a few days.

Recent history shows that the US elections, along with the state of the local economy, have led to massive volatility in Bitcoin. Therefore, while it is still unclear who will win on Tuesday, there is a good chance that there will be tons of swings for BTC and altcoins, so traders should be wary.