Originally published on: November 04, 2024
As the US presidential election draws near, the crypto market experienced a massive liquidation of almost $350 million with Bitcoin briefly dropping below $69,000. Traders are feeling the pressure leading up to the election day on Nov. 5.
According to CoinGlass data, a total of $349.8 million was liquidated, with $259.7 million from long bets and $90.1 million from short bets on Nov. 3. This marked the largest day of liquidations since Oct. 25 when Bitcoin failed to maintain its rally above $70,000.
Bitcoin has been on a rollercoaster ride over the past week, starting at around $67,700 on Oct. 28, reaching a high of nearly $73,300 on Oct. 29, before dropping to a low of $67,719 on Nov. 3. It has since recovered and is currently trading at $69,145 according to CoinGecko.
The fluctuating price of Bitcoin is closely tied to the US presidential election odds on Polymarket, where Donald Trump and Kamala Harris are in a neck-to-neck race. Trump, who was initially favored to win, has seen his odds decrease to 56%, down from a peak of 67% on Oct. 30. Harris, on the other hand, has been gaining ground with a lead of 0.9 percentage points on Nov. 3, as shown by data from FiveThirtyEight.
The crypto industry is closely watching the election outcome as it could have a significant impact on Bitcoin’s price. Some traders speculate that a Trump victory could push Bitcoin to reach $100,000, while analysts predict that a Harris win could lead to a significant price drop by year-end.
With the election results uncertain, traders are preparing for potential market volatility with Bitcoin expected to experience at least a 10% move in either direction depending on the election outcome.
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