As the US Presidential Election draws closer, the cryptocurrency market is experiencing a rollercoaster ride. While Bitcoin, the world’s largest cryptocurrency, took a tumble, Dogecoin soared, reflecting the heightened volatility and uncertainty surrounding the election outcome.
Bitcoin, which had reached near-record highs last week, fell to $66,800 in the early evening before recovering slightly to above $68,000 overnight. Despite Donald Trump’s increasing odds on prediction markets, Bitcoin failed to maintain its recent gains. Ethereum, the second-largest cryptocurrency, also witnessed heavy selling pressure.
However, Dogecoin bucked the trend, outperforming the market with over 8% gains in the past 24 hours. This surge could be attributed to increased interest and speculation surrounding the meme-based cryptocurrency, which has become a favorite among retail investors.
The cryptocurrency market experienced significant liquidations in the past 24 hours, exceeding $200 million. Notably, bullish leveraged positions accounted for over 75% of these liquidations, indicating a shift in market sentiment. Bitcoin’s Open Interest, a measure of outstanding contracts, dropped 0.87% in the same period. Interestingly, 60% of the top traders on the cryptocurrency exchange Binance were leveraged long on Bitcoin, hinting at continued bullish sentiment among some market participants.
Despite the recent volatility, the Cryptocurrency Fear and Greed Index remains in the “Greed” zone, suggesting a potential for higher buying pressure in the days to come. This indicates that overall sentiment remains bullish, even though short-term fluctuations are likely to persist.
Analyst Predictions
Prominent cryptocurrency analyst Miles Deutscher has outlined two potential scenarios for Bitcoin’s future, contingent on the election outcome. A Trump victory, he predicts, would lead to an immediate rally and a new all-time high this year. Conversely, a Kamala Harris victory could trigger a sell-off and push the highs back to the first quarter of 2025. He maintains that regardless of the winner, Bitcoin will eventually reach $100,000, but the path to achieving this milestone will differ.
Influential cryptocurrency analyst and trader Ali Martinez observes a strong resemblance between Ethereum’s trajectory and the S&P 500. He believes this could be the last dip for Ethereum before it triples in value and hits $10,000. Martinez also identifies a buy signal for Bitcoin on the 12-hour chart using the TD Sequential indicator, further reinforcing the bullish outlook for the leading cryptocurrency.
The upcoming election is undoubtedly a major catalyst for market volatility, particularly in the cryptocurrency space. As the election results unfold, we can expect significant price movements and heightened trading activity. However, it’s essential to remember that the cryptocurrency market is inherently volatile and susceptible to various factors. Investors should approach trading decisions with caution and conduct thorough research before making any investments.
