Altcoins are preparing to end another bad day, and BTC continues to seek new lows. Despite multiple attempts to break out of a narrow range, Bitcoin failed to surpass $70,000 and approached the $60,000 bottom again. There is a risk of accelerated selling after the daily close in the coming hours.
310 Million Dollars Wiped Out
On Monday, Bitcoin reached $70,000, but by the fourth day of the week, it had lost $8,000. The drop was swift, with BTC lingering below its 2021 peak. According to CoinGlass data, Bitcoin’s decline resulted in $316 million in liquidations over the past 24 hours. This figure indicates that investors expecting a rise faced a real nightmare today.
In just the last 4 hours, $123.5 million in long positions were wiped out. Of this, $30 million represented BTC longs. This means altcoins also experienced a devastating drop. For months, every peak has been an opportunity for short sellers to make satisfying gains. This situation further weakens the bulls, especially during the already inactive summer months.
Why Are Bitcoin and Altcoins Dropping?
FalconX research director David Lawant associates the recent drop with the US elections. While Biden is the Democratic candidate, Trump had a higher chance of winning. Now, the US faces the possibility of electing its first female President. Trump faced intense propaganda as a disturbing figure in previous elections. His recent trial and controversial stance towards certain groups could make Harris’s job easier. At least, compared to Biden, who struggles with speaking and walking, she is a better opponent.
Additionally, Harris’s record-high chances of winning on prediction platforms support the decline.
“Prediction markets show that Trump’s chances of winning the election are slightly lower, which is not favorable for the crypto market right now. These factors, along with the lack of immediate positive catalysts, have led to today’s red market.”
Lawant also reminded that rising tensions in the Middle East are not good for cryptocurrencies. The potential for increased tension over the weekend, when markets are closed, is high.
