It was less than a week ago when the primary cryptocurrency skyrocketed to $73,500 for the first time since the all-time high registered in March this year.
The landscape seems entirely different now, and the question of what has changed pops up.
The chart above paints a clear and painful picture of BTC’s recent price moves. As mentioned above, it came $150 away from charting a new all-time high on Tuesday but lost a lot of the momentum in the following days.
After the Friday fall to under $69,000, it jumped to $71,600 later that day. However, it went on the retreat once again and currently struggles at $67,700, which means that it has lost about $4,000 since Friday evening.
Although there’s no certainty behind the reasoning, the most obvious one points to the US presidential elections and the recent drop in odds for Donald J. Trump.
The former president made a 180 turn regarding the cryptocurrency industry and has become a vocal supporter now, making numerous promises like allowing bitcoin mining to thrive in the US and even hinting at purchasing BTC for US reserves.
His odds to win the election on Tuesday, however, declined hard in the past few days. According to data from ElectionBettingOdds, Trump has lost 9.8% in the past week, most of which happened since Friday. He is still in the lead, but only by 51.7% against 47.9% for Kamala Harris.
The blockchain-based alternative Polymarket shows an even more dire picture. Trump’s odds peaked at 66.9% on Wednesday against 33.1% for Harris but have changed to 53.7% and 46.4%, respectively. This means that the Republican has lost more than 13% in just a few days.
Recent history shows that the US elections, as well as the local economy state, have resulted in massive volatility for bitcoin. Consequently, even though it’s still uncertain who will win on Tuesday, chances are that there will be tons of fluctuations for BTC and the altcoins, so traders should be wary.
