Originally published on: November 01, 2024
The recent drop in Bitcoin’s price has left many investors wondering about the cause. The cryptocurrency fell by over 6.50% following a decrease in Donald Trump’s winning odds in the upcoming US presidential elections.
Just three days after reaching its second-highest level in 2024 at $73,600, Bitcoin’s price has plummeted to around $69,200 as of November 1, marking a 4.65% drop in the last 24 hours.
Experts attribute this decline to the narrowing lead for Trump over Democratic candidate Vice President Kamala Harris on prediction markets like PredictIt, Polymarket, and Kalshi, where users are placing bets on election outcomes.
Bitcoin has long been considered a “Trump hedge” due to the former president’s support for the crypto sector. This decline in price is believed to be a correction after Bitcoin’s rally, which saw the cryptocurrency approaching its all-time high of $73,794.
Market analysts suggest that Bitcoin’s overbought correction was triggered by the daily relative strength index (RSI) crossing above 70 on October 29, indicating an overheated rally. The price has now fallen within a rising wedge pattern, potentially signaling further declines towards $68,000.
If Bitcoin breaks below the lower trendline of the wedge, it could face a breakdown stage with a target price in the $55,500-58,000 range in the coming months. Investors are advised to conduct their own research before making any investment decisions.
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