Market Volatility: Cryptocurrencies React to Presidential Election
As the US presidential election draws near, cryptocurrency investors are bracing themselves for impact. The world’s largest cryptocurrency, Bitcoin, has taken a hit, plummeting to $66,800 before recovering above $68,000 overnight. Meanwhile, Dogecoin has bucked the trend, surging over 9% in the last 24 hours.
Cryptocurrency Market Snapshot
As of 8:30 p.m. EDT, the cryptocurrency market looked like this:
- Bitcoin (BTC): -0.55%, $67,984.27
- Ethereum (ETH): -1.55%, $2,404.36
- Dogecoin (DOGE): +9.07%, $0.1625
What’s Behind the Market Shift?
Donald Trump’s increasing odds on Polymarket failed to boost Bitcoin, which has now erased all its gains since last week’s climb to near-new highs. Ethereum also encountered heavy sell-offs, while Dogecoin outperformed the market with over 8% gains in the last 24 hours.
Liquidations and Open Interest
Cryptocurrency liquidations breached $200 million in the last 24 hours, with bullish leveraged positions accounting for over 75% of the total. Bitcoin’s Open Interest dropped 0.87% in the last 24 hours. Interestingly, 60% of the top traders on Binance were leveraged long on Bitcoin as of this writing.
Market Sentiment
The market sentiment remains in the “Greed” zone, according to the Cryptocurrency Fear and Greed Index, indicating potential for higher buying pressure in the days to come.
Top Gainers
- Dogecoin (DOGE): +8.62%, $0.1633
- Mog Coin (MOG): +3.44%, $0.000001779
- Monero (XMR): +1.90%, $159.68
Global Cryptocurrency Market
The global cryptocurrency market stood at $2.22 trillion, following a decline of 2.92% in the last 24 hours.
Stock Market Reaction
The Dow Jones Industrial Average slipped 257.59 points, or 0.61%, to close at 41,794.60. The S&P 500 lost 0.28% to end at 5,712.69, while the tech-heavy Nasdaq Composite dipped 0.33%, closing at 18,179.98.
Analyst Insights
Widely followed cryptocurrency analyst Miles Deutscher highlighted two possible trajectories Bitcoin could follow after the election outcome. In the event of a Trump victory, he predicted an immediate rally and a new all-time high this year. On the other hand, a Kamala Harris victory would cause a sell-off and push the highs back to the first quarter of 2025. “Either way BTC goes to $100,000+, it’s just the path that changes,” Deutscher added.
Influential cryptocurrency analyst and trader Ali Martinez likened Ethereum’s trajectory to the S&P 500, noting that this could be the last dip for the second-largest cryptocurrency before it sails to $10,000. Additionally, Martinez observed a buy signal for Bitcoin on the 12-hour chart using the TD Sequential indicator.
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