Bitcoin (BTC) fell below $69,000 on Sunday, leading to significant levels of market liquidations. Interestingly, analysts have also noted a correlation between this decline and the diminishing chances of victory for Republican candidate for President of the United States, Donald Trump, ahead of the November 5 general election.
Falling Bitcoin Price Leads to $232.6 Million in Liquidations
Over the past few days, Bitcoin has seen a significant price recorrection after a prolonged price rally in October during which it gained 20%. The price of the leading cryptocurrency initially fell over $73,000 on Friday, finding support around the $69,000 region.
After a brief period of sideways movement, BTC saw another significant decline on Sunday, hitting a local low of $67,960. Amid this price decline, crypto analyst Ali Martinez noted that all 104,787 trade positions were liquidated, resulting in a loss of $232.6 million.
Data shared by Martinez showed that long traders accounted for the majority of these numbers with $198.6 million in liquidations, while only $34 million of short positions were closed. The move means more traders were expecting a rebound from the crypto market leader after the initial price pullback on Friday.
At the time of writing, Bitcoin is back above $68,000 with little indication of its next price move. If its current downtrend persists, the leading cryptocurrency could fall as low as $55,000, in line with the limited movement that has lasted over the past eight months.
Alternatively, Bitcoin could see a price recovery returning to levels near its all-time high at $73,750, as bullish sentiments remain high amid increased ETF inflows, approaching US elections and a planned Fed rate cut of 25 basis points.
Is a Potential Trump Loss a Threat to Bitcoin?
So far, Bitcoin’s decline on Sunday has found a correlation with a decrease in the probability of victory for US presidential candidate and crypto activist Donald Trump. According to Polymarket data, Trump’s chances of winning the November 5 presidential election fell 4.3% after his opponent, Democratic candidate and US Vice President Kamala Harris, emerged as the favorite to win. in Pennsylvania.
Although the Pro-crypto Donald Trump remains the front-runner to emerge as president with 53.8% to Harris’ 46.1%, Bitcoin’s recent price reactions showed a potential loss for the Republican could exert a price decline significant for the crypto market leader. However, historical price data indicates that such a slowdown would likely be temporary, as Bitcoin has been consistently on an upward trajectory following the US election, regardless of the outcome.
At the time of writing, BTC is now trading at $68,471, reflecting a 1.38% price loss over the past 24 hours. At the same time, the daily trading volume of the asset is down 40.54% and is valued at $24.40 billion.
Featured image from Yahoo Finance, chart from Tradingview
