Bitcoin’s scorching hot week, which nearly reached its all-time high, appears to have cooled down, dipping significantly amid concerns surrounding Donald Trump’s presidential campaign. While Bitcoin briefly topped $73,000, it dropped below $68,000, illustrating market volatility influenced by external factors.
Bitcoin Corrects Amid Election Uncertainty
After reaching highs around $73,000 earlier this month, Bitcoin’s price took a noticeable dip on Sunday, falling as low as $67,569 according to CoinGecko. Although prices recovered slightly, reaching $68,040, Bitcoin saw a nearly 2% decrease on the day, reversing some of last week’s impressive gains.
Last week witnessed record-breaking inflows into Bitcoin ETFs, particularly BlackRock’s iShares Bitcoin Trust (IBIT). However, this momentum lost steam towards the end of the week, coinciding with growing doubts about Donald Trump’s chances for re-election.
Poll Raises Doubts About Trump’s Win
A recent poll conducted by veteran pollster Ann Selzer suggests Republican candidate Donald Trump could lose Iowa, a traditionally Republican stronghold. While considered an outlier, Selzer’s track record for accuracy makes it a significant indicator. Furthermore, Trump’s previously dominant lead in prediction markets like Polymarket and Kalshi began to shrink considerably following this poll.
Impact on Crypto Market
This shift in political sentiment appears to have influenced Bitcoin’s price, creating uncertainty in the crypto market. As Trump’s potential presidency was generally viewed as favorable for the cryptocurrency industry, his decreased odds of victory have cast a shadow on the outlook.
The recent volatility resulted in substantial liquidations across the crypto market. Over $315 million worth of positions were liquidated in the past 24 hours, highlighting the market’s susceptibility to external shocks.
This dip in Bitcoin, following a week of considerable growth, has shaken several traders who anticipated further price increases. The close connection between Bitcoin’s performance and the broader cryptocurrency market suggests that this decline may have wider implications across the industry.
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