Bitcoin‘s value is on a downward trajectory after a brief surge, currently sitting at $67,670. The cryptocurrency market is facing increased pressure, particularly as the upcoming U.S. election looms and critical support levels slip away. Profit-taking has surged, contributing to losses in altcoins, which are down over 5%.
What Caused Bitcoin’s Downturn?
Anticipation of a new U.S. President being announced this Tuesday has led traders to adopt a more cautious stance across the cryptocurrency market. Bitcoin, which had recently surpassed $73,000, experienced over $2 billion in sales from short-term holders last Thursday, indicating a belief that further price peaks may not materialize. As Trump’s chances on crypto prediction platforms decline, Bitcoin continues its downward spiral.
Will Market Conditions Improve?
Concerns over ETF inflows seem to be influencing market volatility, especially as the election date nears, reducing the perceived likelihood of Trump’s victory. Analyst Moustache highlighted that Bitcoin testing the $64,000 to $66,000 range appears plausible and will be critical in the coming days.
- Bitcoin’s price has fallen below $68,000 due to profit-taking.
- Short-term investors sold over $2 billion in Bitcoin last Thursday.
- Upcoming U.S. election is causing risk aversion among traders.
- Federal spending increased significantly in Q3 2024, affecting market sentiment.
Despite potential rebounds linked to rising national debt, prominent figures like Warren Buffet advocate for cash reserves during uncertain economic times, which may hinder cryptocurrency growth. The Kobeissi Letter highlighted a 9.7% rise in federal spending last quarter, marking the steepest increase since early 2021, raising further questions about the market’s stability.