Bitcoin "Dives" Below $70,000: Linked to Trump's Poll Slump?

Bitcoin "Dives" Below $70,000: Linked to Trump's Poll Slump?The virtual currency market has once again experienced a "bloodbath," with Bitcoin continuing to retrace and break through the key technical support level of $70,000. Panic selling is evident, with many cryptocurrencies experiencing significant declines and over 100,000 accounts liquidated

Bitcoin "Dives" Below $70,000: Linked to Trump's Poll Slump?

The virtual currency market has once again experienced a "bloodbath," with Bitcoin continuing to retrace and break through the key technical support level of $70,000. Panic selling is evident, with many cryptocurrencies experiencing significant declines and over 100,000 accounts liquidated.

Bitcoin's previous strong surge was seen as a "Trump trade," with the market believing that if elected, Trump would support Bitcoin as a U.S. strategic reserve asset. However, as a Forbes poll showed Harris leading Trump, Bitcoin also experienced a noticeable pullback.

Yardeni Research believes that a Harris victory could lead to a decline in Bitcoin, but the impact of a Trump win on Bitcoin is difficult to predict. The Head of Research at crypto brokerage FalconX stated that Bitcoin could perform well regardless of the election outcome.

Besides the U.S. election factor, the Federal Reserve will announce its interest rate decision on November 8th, which could also have a significant impact on the cryptocurrency market.

It's worth noting that Hong Kongs digital currency concept stocks and Bitcoin ETFs have been weak recently. New Huo Technology Holdings, OSL Group, Meitu, etc. have performed poorly, while Huaxia Bitcoin ETF, Bosera Bitcoin ETF, and Harvest Bitcoin ETF have all fallen by over 4%.

Currently, Bitcoin has been hovering at high levels for some time. The recent short-term "dive" and adjustment have exceeded market expectations, causing numerous leveraged speculators to be "liquidated," resulting in substantial losses. Panic selling is evident in the market, and investors need to be wary of risks and exercise caution.

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Bitcoin "Dives" Below $70,000

Recently, the virtual currency market has once again experienced a "bloodbath." According to Baidu Stock Market, last week, Bitcoin briefly reached a high of approximately $73,622, followed by continuous retracement. As of now, Bitcoin has dipped to around $68,895, marking a decline of about 6.4% from its previous high.

Bitcoin has been hovering at high levels for some time. The short-term "dive" below the key technical support level of $70,000 and the adjustment have exceeded market expectations, leading to numerous leveraged speculators being "liquidated," resulting in substantial losses. Other cryptocurrencies in the virtual currency market have also experienced a "sharp decline." PIXFI, TOMI, CARV, and other cryptocurrencies have seen significant drops. According to Coinglass data, over 100,000 accounts have been liquidated in the past 24 hours, reflecting a significant level of panic selling in the market.

Trump's Poll Slump Could Be a Reason for Bitcoin's Pullback

Some analysts point out that Bitcoin's previous strength was driven by several news-related stimuli. Among them, Trump's poll lead over Harris was a major factor. Previous media reports indicated that Trump had made promises, including strong support for cryptocurrencies. He stated that if re-elected, he would make Bitcoin a U.S. strategic reserve asset and turn the U.S. into the "global crypto capital." Consequently, Bitcoin was seen as a "Trump trade" in the capital market.

However, the current Forbes poll shows Harris narrowly leading Trump, and Trump's "stagnant momentum before the election" might also be a contributing factor behind Bitcoin's short-term "dive."

Mixed Views from Institutions

Institutions have expressed mixed opinions on the matter. Yardeni Research wrote in a report: "While Bitcoin may decline if Harris wins the election, the reaction of Bitcoin to President Trump's election is harder to measure." "Bitcoin may continue to rise, or considering the gains so far this year, it may witness a typical 'buy the rumor, sell the news' scenario.

The Head of Research at crypto brokerage FalconX stated: "We believe the market consensus is that Bitcoin is likely to perform well regardless of the outcome of the U.S. election. Team analysis shows a clear upward bias in option activity surrounding the upcoming election."

Election and Fed's Interest Rate Decision to Impact Market

November 5th marks the voting day for the 2024 U.S. Presidential Election. U.S. Vice President and Democratic presidential candidate Harris will face off against former U.S. President and Republican presidential candidate Trump. Additionally, the Federal Reserve will announce its interest rate decision on November 8th, which could have a significant impact on the cryptocurrency market.

Hong Kong Digital Currency Concept Stocks and Bitcoin ETFs Experience Weakness

It's worth noting that Hong Kong's digital currency concept stocks and Bitcoin ETFs have been weak recently. As of press time, since the beginning of November, New Huo Technology Holdings (01611.HK) has declined by 6.64%, OSL Group (00863.HK) has fallen by 1.52%, and Meitu (01357.HK) has remained relatively unchanged. In terms of ETFs, Huaxia Bitcoin ETF (03042.HK), Bosera Bitcoin ETF (03008.HK), and Harvest Bitcoin ETF (03439.HK) have all experienced losses exceeding 4%.

Risk Warning

Currently, Bitcoin has been hovering at high levels for some time. The recent short-term "dive" and adjustment have exceeded market expectations, causing numerous leveraged speculators to be "liquidated," resulting in substantial losses. Panic selling is evident in the market, and investors need to be wary of risks and exercise caution.

This article is from Caihua.com