Key Points
- The Bitcoin (BTC) price experienced a drop ahead of the US 2024 elections.
- The crypto market has been influenced by the upcoming US election and the actions of Bitcoin whales.
As the 2024 US presidential election approaches, the cryptocurrency market, led by Bitcoin (BTC), is experiencing significant volatility.
The total market cap of cryptocurrencies fell over 2% in the last 24 hours, with Bitcoin’s price dropping to $66,853 before bouncing back to over $68.7k.
Market Volatility and Liquidations
The market’s volatility has led to the liquidation of more than $200 million from the crypto-leveraged market, with over $148 million involving long traders.
The upcoming news from the United States is expected to further influence the volatility in the crypto market.
For the first time since the inception of cryptocurrencies, the issue of crypto has become a significant point in the US general elections.
A recent survey indicates that the majority of crypto investors and registered American voters prefer a pro-crypto candidate.
In the presidential race, Republican candidate Donald Trump is leading Democratic candidate Kamala Harris by more than 22 percent, according to a Polymarket poll.
It is noteworthy that Trump has received significant support from the crypto community for his promises to protect the industry from predatory regulators and the US SEC.
Bitcoin Whales and Market Impact
In addition to the US 2024 elections, the Bank of England (BoE) and the Federal Reserve are expected to announce their benchmark interest rates on Thursday.
Analysts from Wall Street predict another rate cut for the US and England to boost their respective economies.
Due to these factors, more crypto investors are moving to the stablecoins market to safeguard their capital from short-term volatility and uncertainties.
On-chain data analysis by Coinglass reveals that 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.
Meanwhile, Mt. Gox recorded the highest on-chain activity in the last two months after transferring Bitcoins worth over $2.1 billion to an unidentified wallet.
The crypto market is projected to remain bullish for the next quarters after consolidating in the last eight months.
However, this bullish sentiment could be invalidated or delayed if the Bitcoin price consistently closes below the support range between $61k and $65k in the coming weeks.
