Bitcoin (BTC) crashed below $69,000 on Sunday resulting in significant levels of market liquidations. Interestingly, analysts have also noted a correlation of this decline with a decrease in the winning odds of US Republican presidential candidate Donald Trump ahead of the general elections on November 5.

Bitcoin Price Fall Induces $232.6 Million In Liquidations

In the last few days, Bitcoin has witnessed some significant price re-correction following a prolonged price rally in October during which it gained by 20%. The price of the premier cryptocurrency initially dropped from above $73,000 on Friday finding support around the $69,000 region.

Following a a brief period of sideways movement, BTC experienced another significant decline on Sunday reaching a local bottom of $67,960. Amidst this price drop, crypto analyst Ali Martinez noted that the 104,787 trading positions were liquidated resulting in a loss of $232.6 million.

Data shared by Martinez showed that long traders accounted for majority of these figures with $198.6 million in liquidations while only $34 million in short positions were closed. This development means that more traders had anticipated a rebound by the crypto market leader following its initial price pullback on Friday.

At the time of writing, Bitcoin has retraced to above $68,000 with little indication of its next price movement. If its current downtrend persists, the premier cryptocurrency could fall as low as $55,000 in line with a range-bound movement that has lasted over the past eight months. 

Alternatively, Bitcoin could undergo a price recovery returning to levels within its all-time high at $73,750 value as bullish sentiments remain on the high amidst heightened ETF inflows, a fast-approaching US election, and an

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Author: Semilore Faleti