The cryptocurrency market witnessed a turbulent period as Bitcoin's price dropped but later recovered, reaching above $68,000 after plummeting to $66,800 initially. Despite Donald Trump's rising odds on Polymarket, Bitcoin failed to rally and has now retraced all gains made leading up to recent highs.
Alongside Bitcoin's fluctuation, Ethereum faced significant sell-offs, while Dogecoin stood out with a notable rise of over 8% in the past 24 hours, outperforming the overall market. Cryptocurrency liquidations exceeded $200 million within the same period, with a majority of these coming from bullish leveraged positions accounting for more than 75% of the total liquidations. Despite this volatile environment, Bitcoin's Open Interest decreased by 0.87% in the last 24 hours.
The overall market sentiment, as reflected by the Cryptocurrency Fear and Greed Index, remained in the "Greed" zone, suggesting a potential increase in buying pressure in the near future. The global cryptocurrency market cap stood at $2.22 trillion, indicating a 2.92% decline over the same period. Concurrently, stock markets faced pressure ahead of the election, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posting losses as investors sought refuge in safe-haven investments such as U.S. Treasurys, causing the 10-Year Treasury yield to fall to 0.3%.
Notable cryptocurrency analysts provided their perspectives on the potential paths for Bitcoin and Ethereum post-election. Analyst Miles Deutscher suggested that a Trump victory could lead to an immediate rally and new all-time highs for Bitcoin in 2021, while a Kamala Harris win might trigger a sell-off postponing highs to early 2025 but ultimately seeing Bitcoin surpass $100,000. Ali Martinez compared Ethereum's trajectory to the S&P 500, predicting a bullish future for the cryptocurrency, and highlighted a buy signal for Bitcoin on the 12-hour chart using the TD Sequential indicator.