Bitcoin Reduced Losses Recorded After Yesterday’s Drop

CoinDesk 20 Index: 2,062.17 -3.66%Bitcoin (BTC): $70,079.42 -3.1%Ether (ETH): $2,519.63 -4.34%S&P 500: 5,705.45 -1.86%Gold: $2,752.82 +0.38%Nikkei 225: 38,053.67 -2.63%

Bitcoin compensated for some of its losses during the day and fell to $ 68,800 before returning to $ 70,000.

However, despite the recovery, it continues to trade around 3% lower in the last 24 hours. Altcoins, on the other hand, suffered greater losses, with the CoinDesk 20 Index, which tracks the overall crypto market, losing over 3.5%.

Speaking about the market declines, Quinn Thompson, founder of crypto hedge fund Lekker Capital, noted gains in tech stocks, tensions between Iran and Israel and the sharp rise in UK gold yields following the rollout of the government budget earlier this week.

The Bitcoin (BTC) price has fallen nearly 4 percent in the last 24 hours following continued profit-taking ahead of the weekend, causing a market pullback that led to the liquidation of over $250 million in bullish bets.

BTC fell from a high of $72,500 yesterday to just over $69,000 early today, significantly paring the gains made for the token since Monday. This resulted in the overall market value falling by 5.5%.

The Fear and Greed Index, which tracks crypto market sentiment and volatility, reached the “extreme greed” level yesterday, a sign of local highs.

Democratic candidate Kamala Harris is increasingly likely to win next week’s US presidential election, according to contracts on crypto prediction market Polymarket.

Some observers say this increase is due to a hedging environment among traders betting that Harris’ opponent, Donald Trump, will win. Harris votes, which were evaluated as 33 percent on October 30, have now increased to almost 39 percent. Although Trump’s probability of winning decreases accordingly, Trump continues to be the candidate who manages to stay ahead with a 61% margin.

Some market observers think that the decline recorded in the crypto market yesterday may be related to Trump’s decline in Polymarket.

Ethereum futures funding rates are showing a slight upward trend. The funding rates metric measures how aggressive buyers are compared to sellers in the futures market. Despite the recent increase, the numbers remain well below the levels seen in March. According to CryptoQuant, “Funding Rising rates will not only confirm that participants are willing to take long positions in Ethereum, but will also put upward pressure on the price, potentially leading to a stronger and more sustainable rise.”Source: CryptoQuant