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Steve Muchoki
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Key Notes
- Bitcoin price is currently retesting crucial support levels above $68K that could yield a rally to new ATH soon.
- More whale investors have fled the crypto market due to high-impact news from the United States and the UK in the coming days.
As American voters go to the ballot boxes to elect their 47th president, the crypto market, led by Bitcoin BTC $95 991 24h volatility: 0.1% Market cap: $1.90 T Vol. 24h: $90.50 B , is undeniably feeling the heat of the stakes at hand. The total crypto market cap slipped over 2 percent in the last 24 hours to hover around $2.38 trillion, on Tuesday, November 5, during the mid-European session. Bitcoin price dropped as low as $66,853 in the past 24 hours before rebounding above $68.7 at the time of this report.
Following the heightened volatility, more than $200 million was liquidated from the crypto-leveraged market, with over $148 million involving the long traders. The upcoming high-impact news from the United States in the coming days has significantly influenced the notable volatility in the crypto market.
Moreover, the crypto issue has stood out in the US general elections for the first time since the Satoshi era. According to a recent survey, the majority of crypto investors and registered American voters prefer a candidate who is pro-crypto to shape the industry in the coming years.
As for the presidential race, Republican presidential candidate Donald Trump was leading Democratic presidential candidate Kamala Harris on the Polymarket poll by more than 22 percent as of this report. It is worth noting that Trump has received major backing from the crypto community for his promises to protect the industry from predatory regulators and the US SEC.
Bitcoin Whales Take a Step Back
In addition to the US 2024 elections, which will have a major impact on the crypto market, the Bank of England (BoE) and the Federal Reserve are expected to release their benchmark interest rates on Thursday. Wall Street analysts forecast another rate cut for the US and England in a bid to bolster the respective economies.
As a result, more crypto investors have been taking shelter through the stablecoins market, in a bid to protect their capital from short-term volatility and uncertainties. According to on-chain data analysis by Coinglass, the overall supply of Bitcoin on centralized exchanges increased by nearly 6k in the last seven days to about 2.39 million.
On Monday, the US spot BTC ETF issuers continued with last Friday’s cash outflows, amid rising fear of heightened crypto volatility. Apart from BlackRock’s IBIT which registered a net cash inflow of about $38 million on Monday, the tests of the US spot BTC ETF issuers registered a net cash outflow of over $541 million.
Meanwhile, Mt. Gox registered the highest on-chain activity in the last two months after transferring Bitcoins worth over $2.1 billion to an unmarked wallet.
🚨 Mt. Gox transferred another 32,371 $BTC ($2.19B) to 3 new wallets in the last 2 hours.
Over the last 4 days, Mt. Gox has transferred out a total of 32,871 $BTC ($2.22B). Among these tokens, 296 $BTC ($20.13M) was moved to #B2C2 and #OKX.
Currently, there remain 12,006 $BTC… pic.twitter.com/L3ZQZLpnDR
— Spot On Chain (@spotonchain) November 5, 2024
What’s Next?
The crypto market is expected to remain in a bullish outlook for the next quarters after consolidating in the last eight months. Based on previous US elections and crypto bull markets, Bitcoin price has a higher chance of continuing with the October bullish sentiment.
The days following the last three US presidential elections have been volatile for #Bitcoin, yet the overall trend has stayed upward! pic.twitter.com/kIjEd3hFpo
— Ali (@ali_charts) November 4, 2024
However, the bullish sentiment could be invalidated or delayed if Bitcoin price consistently closes below the support range between $61k and $65k in the coming weeks.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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