Bitcoin and altcoins have experienced a substantial decline, marking another challenging day for the crypto market. Bitcoin (BTC), after several attempts to break out of a tight range, has failed to surpass the $70,000 mark and is nearing the $60,000 threshold. Experts warn that there could be increased selling pressure following the daily close.
310 Million Dollars Wiped Out
On Monday, Bitcoin touched $70,000, but by Thursday, it had plummeted by $8,000. This steep drop left Bitcoin trading below its 2021 highs. CoinGlass data reveals that Bitcoin’s fall led to $316 million in liquidations over the past 24 hours, highlighting the severe impact on investors who were betting on a price increase.
In the last four hours alone, $123.5 million in long positions were liquidated, with $30 million of that being Bitcoin longs. This also signifies a significant downturn for altcoins. For months, short sellers have capitalized on every peak, further weakening bullish sentiment, particularly during the traditionally sluggish summer months.
Why Are Bitcoin and Altcoins Dropping?
David Lawant, FalconX’s research director, attributes the recent downturn to the upcoming US elections. With Joe Biden as the Democratic candidate, the possibility of Kamala Harris becoming President has increased. This shift has brought uncertainty to the market, contributing to the decline in cryptocurrency values. Lawant emphasized that Trump’s previous controversial actions and recent trial could make Harris a stronger opponent compared to Biden.
Additionally, prediction platforms show Harris with record-high chances of winning, further supporting today’s market downturn. Lawant also noted that rising Middle East tensions, which could escalate over the weekend, are adding to the market’s woes.
Key Takeaways for Investors
– Monitor political developments closely as they can impact market sentiment.
– Be aware of external geopolitical tensions that may affect crypto prices.
– Consider the increased activity of short sellers during market peaks and low-volume periods.
– Stay informed about prediction market trends regarding significant events.
The recent market activities highlight the volatility and the factors driving Bitcoin and altcoin prices. Investors are advised to stay vigilant and consider the broader political and economic environment when making trading decisions.