Is This Why Bitcoin's Price Lost $4K in 2 Days?

Just a week ago, Bitcoin reached a significant milestone, climbing to $73,500, marking its highest point since the all-time high recorded in March. However, the situation has dramatically changed, leading to questions about the factors influencing this decline.

• Following a Friday drop below $69,000, Bitcoin briefly recovered to $71,600 but has since retreated to around $67,700.
• This decline represents a loss of approximately $4,000 within just two days.

Impact of US Presidential Elections

While there is no definitive explanation for the recent price drop, many analysts point to the US presidential elections as a key factor. The odds for Donald Trump, who has shifted to a pro-crypto stance, have decreased significantly in recent days.

• Trump had been vocal about supporting the cryptocurrency industry, promising to foster Bitcoin mining in the US and even suggesting the possibility of purchasing Bitcoin for national reserves.
• However, recent data shows that Trump’s chances of winning the election have declined by 9.8% in the past week, with his current standing at 51.7% compared to Kamala Harris at 47.9%.

Changing Odds on Prediction Markets

Prediction markets like Polymarket illustrate a more concerning trend for Trump. His odds peaked at 66.9% but have since dropped to 53.7%, while Harris’s odds increased to 46.4%.

• This sharp decline in Trump's odds has contributed to increased volatility in Bitcoin prices, reflecting historical patterns where elections and economic conditions significantly impact cryptocurrency markets.

The recent fluctuations in Bitcoin's price appear to be closely tied to the evolving political landscape and the uncertainty surrounding the upcoming elections. As the situation develops, traders should remain vigilant for potential market volatility.