Is this why Bitcoin price lost $4000 in 2 days?

It was less than a week ago that the major cryptocurrency soared to $73,500 for the first time since the all-time high recorded in March of this year.

The landscape now looks completely different and the question arises as to what has changed.

Bitcoin/Price/Chart 03.11.2024. Source: TradingView

The chart above shows a painfully clear picture of BTC’s recent price movements. As mentioned earlier, it hit $150 to set a new all-time high on Tuesday, but lost much of its momentum in the following days.

After Friday’s dip below $69,000, it jumped to $71,600 later in the day. However, he folded again and is currently struggling with $67,700, which means he’s down about $4,000 since Friday evening.

Although there is no certainty behind the reasoning, the most obvious one points to the US presidential election and the recent drop in the odds of Donald J. Trump.

The former president did a U-turn on the cryptocurrency industry and has now become a vocal supporter, making numerous promises such as allowing bitcoin mining to thrive in the US and even hinting at buying BTC for US reservations.

His odds of winning Tuesday’s election, however, have fallen sharply in recent days. According to data from ElectionBettingOdds, Trump has lost 9.8% in the past week, most of which happened since Friday. She is still in the lead, but only with 51.7% to Kamala Harris’ 47.9%.

The blockchain-based Polymarket alternative paints an even more dire picture. Trump’s odds peaked on Wednesday at 66.9 percent to Harris’ 33.1 percent, but have changed to 53.7 percent and 46.4 percent, respectively. That means the Republican has lost more than 13% in just a few days.

Recent history shows that the US election, as well as the state of the local economy, has resulted in massive bitcoin volatility. Accordingly, while it is still unclear who will win on Tuesday, there is likely to be tons of volatility for BTC and altcoins, so traders should be cautious.

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