- Crypto market liquidations neared $350 million after Bitcoin dipped below $69,000 as Donald Trump’s lead on Polymarket narrowed.
- Bitcoin’s price saw wide swings over the past week, reaching a high of almost $73,300 on Oct 29 before dropping to a low of $67,719 on Nov 3.
- Trump’s odds of winning the US presidential election on Polymarket peaked at 67% on Oct 30 but have since corrected to 56% as election day nears.
The crypto markets saw intense volatility and major liquidations as Bitcoin’s price swung wildly in the lead-up to the hotly contested 2024 US presidential election. Over $350 million was wiped out from the crypto market amidst the uncertainty.
Bitcoin Price Plummets Below $69K
On November 3rd, Bitcoin’s price plunged below the key $69K support level, sparking a wave of liquidations across the crypto market. According to data from CoinGlass, a total of $349.8 million was liquidated, with $259.7 million in long positions and $90.1 million in short positions getting wiped out. The massive liquidations made it the largest single day of liquidations since October 25th when Bitcoin failed to sustain a rally past $70K.
Volatile Bitcoin Price Action
Bitcoin has seen tremendous volatility over the past week. After starting at around $67,700 on October 28th, Bitcoin shot up to an almost 2-month high of $73,300 on October 29th. It then proceeded to drop sharply over the next few days, bottoming out at $67,719 on November 3rd before quickly recovering back above $69K. The intense price swings have taken place as the US presidential election race has tightened.
Trump vs Harris: Polls and Prediction Markets Converge
In early October, Republican candidate Donald Trump overtook Democratic challenger Kamala Harris on the crypto prediction market Polymarket as the likely winner of the 2024 election. Trump’s odds of winning peaked at 67% on October 30th. However, his odds have since sharply corrected down to 56% as election day nears. The slide brings Trump’s Polymarket odds more in line with national polling averages, which show him essentially tied with Harris. Harris held double digit leads over Trump as recently as August.
Potential Crypto Market Impacts
Some crypto traders speculate Bitcoin could surge to $100K if Trump pulls off a victory. Meanwhile, analysts at Bernstein have forecast Bitcoin could drop significantly by year-end if Harris wins. In the immediate aftermath of the election, price swings of at least 10% in either direction are expected depending on the winner. Each candidate has staked out different stances on crypto regulation, with Trump seen as more crypto-friendly. The election outcome will likely influence crypto market sentiment and prices over the short to medium term.
Conclusion
The 2024 election has proven to be a tight race with a narrowing odds gap between Trump and Harris. This political uncertainty has spilled over into crypto markets, causing tremendous volatility and liquidations for Bitcoin ahead of election day. The next president will likely shape future crypto regulation and adoption in the US, lending significance to the election outcome. After the votes are counted, observers will be closely eyeing potential crypto price moves depending on who emerges victorious.
