Bitcoin

These Are The Key Reasons

Published

4 hours ago

November 1, 2024

Este artículo también está disponible en español.

The Bitcoin (BTC) price has experienced a significant downturn over the past 24 hours, falling below the critical $70,000 threshold. After reaching a peak of $73,620 on Tuesday, the cryptocurrency has declined by approximately 5.7%, hitting a low of $68,830 on Friday. Analysts point to several key factors behind this decline:

#1 Risk-Off Sentiment Ahead of US Election

The timing of Bitcoin’s price drop coincides with a narrowing lead for former President Donald Trump over Democratic candidate Vice President Kamala Harris in prediction markets such as Polymarket and Kalshi, where users bet on election outcomes. Bitcoin has been considered a “Trump hedge” due to the former president’s strong advocacy for the cryptocurrency sector.

Donald Trump has proposed establishing a “strategic Bitcoin reserve” in the United States if re-elected. Speaking at the Bitcoin 2024 Conference, he outlined plans to retain all Bitcoin currently held or acquired by the US government as part of this reserve. This initiative is a core element of his campaign to strengthen the US as a leader, aiming to make the country the “crypto capital of the planet.”

Earlier in the week, when Trump’s lead over Harris was more substantial, Bitcoin neared its all-time high of $73,777. The shrinking of Trump’s lead appears to have prompted investors to adopt a risk-off stance, contributing to the price decline.

Crypto analyst HornHairs noted that derisking before elections has precedent. “Derisking into the election 5-6 days before it takes place happened in both 2020 and 2016. Price then went on to never retest the lows set the week before the election ever again. Be careful what you sell here,” he remarked via X.

#2 S&P 500 Loses 3-Month Trendline

The correlation between Bitcoin and traditional financial markets may have also influenced BTC’s price movement. The S&P 500 has fallen to its lowest level since October 9, potentially affecting investor sentiment in the crypto space.

Analysts from The Kobeissi Letter observed that despite major tech companies like Apple reporting strong earnings, their stock prices have declined. “Yet another tech giant to beat earnings but trade lower,” they noted, adding that technology stocks faced widespread selling even as Meta, Amazon, and Apple exceeded earnings expectations. They added, It appears that markets are de-risking ahead of the election next week. Brace for volatility.”

Crypto trader Marco Johanning highlighted concerns about the S&P 500 losing its three-month trendline. “Given that the S&P 500 lost the 3-months trendline yesterday, it looks more like a potential selloff before the US election on Tuesday and lower prices in the short term. The perfect bounce level is the 7-month trendline (blue). I don’t want to see prices below the POC/key level around 63k (red),” he wrote via X.

#3 Leverage Flush Out

A significant unwinding of leveraged positions in the markets has also contributed to Bitcoin’s price decline. The market correction appears to be a healthy response to an overextension driven by leverage.

Renowned crypto analyst Miles Deutscher noted: “This pullback is normal (and expected). Market was looking overextended the last few days, and largely driven by leverage. Still not buying heavy as it isn’t a full cascade yet—will wait for one of those days around the election. Not a bad DCA day for certain coins tho.”

Austin Reid, Global Head of Revenue & Business at crypto prime brokerage firm FalconX, pointed out that the crypto derivatives market was “on fire” ahead of the election, with futures open interest for BTC, ETH, and SOL crossing the $50 billion mark for the first time.

On-chain analyst Axel Adler Jr reported that open interest was reduced by $2.1 billion, implying a significant leverage flush out.

Bitcoin leverage flush out | Source: X @AxelAdlerJr

According to data from Coinglass, over the past 24 hours, 93,864 traders were liquidated, with total liquidations amounting to $286.73 million. The largest single liquidation order occurred on Binance’s BTCUSDT pair, valued at $11.26 million. For Bitcoin alone, $81.38 million in long positions were liquidated—the largest amount since October 1.

At press time, BTC traded at $69,446.

Bitcoin price, 1-day chart | Source: BTCUSDT on TradingView.com

Featured image created with DALL.E, chart from TradingView.com

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analysts

Bitcoin Mining Revenue, Profit Fell in October for a Fourth Consecutive Month: JPMorgan

Published

21 mins ago

November 1, 2024

admin

The network’s monthly average hashrate surged to a record high, the report said.

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Bitcoin

I Did Basically Nothing And Got $500 in Bitcoin

Published

3 hours ago

November 1, 2024

admin

A couple of summers ago, I used to order lunch via Grubhub while working long days in the office. When ordering, I always made sure I was logged into Lolli, a bitcoin rewards platform with a browser extension, so that I earned sats back on my purchases.

I eventually stopped eating out so much and began cooking food at home, and over time, I mostly forgot about how I used to stack sats on everyday purchases with Lolli. However, I recently checked my wallet and found 312,770 sats that had risen in value to be worth $220 at the time of writing this.

Looking through my transaction history, the majority of my Lolli purchases were via Grubhub.

My bitcoin rewards for just ordering lunch

My bitcoin back rewards from my ~$20 lunch purchases are currently worth $3-4 each. As bitcoin continues to increase in price, it is pretty wild to think that the rewards I earned will one day be worth more than the purchases I made to get them…

Honestly, it feels like the greatest financial hack that ever existed.

Then, I remembered I had an account with Fold, another bitcoin rewards app. I logged into my account and found 300,416 sats, currently worth $226, just chilling in my wallet there. I also saw that I had accumulated my total rewards earned 1,057,710 sats, currently worth $750, using Fold. Again, all this for doing nothing more than making everyday purchases.

Why did I ever stop using these products? I think I was just lazy and now I’m kicking myself at all the extra bitcoin I could have stacked if I had kept using these platforms — especially through the bear market…

That’s when I realized the genius of these platforms: they don’t require customers to go out of their way to acquire bitcoin. They just allow them to live their lives and get rewards. They make it so that no real change in behavior is required, and people don’t have to invest their hard-earned dollars to get their hands on some bitcoin.

Most Bitcoin companies cater to a pretty niche market that is more technical. But using these products makes me think there is another way to get people into Bitcoin. Bitcoin rewards apps are a clever gateway that my friends who are not into Bitcoin would probably think is really cool and would probably be interested in using to stack their first sats.

While I wish I could go back in time to the bear market and redo all my everyday purchases utilizing a BTC rewards platform, I can’t.

However, I can control my actions today and while moving forward — so I’ll be downloading these apps again. You should, too.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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Altcoins

Top Analyst Says ‘God Candle’ Loading on Solana-Based Altcoin, Updates Outlook on Bitcoin and Dogecoin

Published

8 hours ago

November 1, 2024

admin

A widely followed analyst and trader is leaning bullish on a blockchain oracle built in the Solana (SOL) ecosystem while offering his outlook on Bitcoin (BTC) and Dogecoin (DOGE).

Pseudonymous crypto trader Bluntz tells his 290,400 followers on the social media platform X that the native token of Solana-based blockchain oracle Pyth Network (PYTH) is primed for a strong bullish movement.

“God candle loading on PYTH.

Perfectly rounded bottom with three months of accumulation.

Currently flirting with the final boss as far as accumulation resistance goes [just below the $0.50 price] and once cleared, clear skies ahead.

Solana beta is about to start getting some love again in my opinion.”

PYTH is trading at $0.399 at time of writing.

Moving on to the flagship digital asset, Bluntz – who regularly utilizes Elliott Wave theory in his technical analysis – says that Bitcoin “should pop higher” after undergoing a brief correction in a three-wave pattern.

Elliott Wave theory states that the main trend of the price of an asset moves in a five-wave pattern while a correction occurs in a three-wave pattern.

Based on the analyst’s chart, it appears Bluntz is suggesting that Bitcoin could hit a new all-time high price of just under $80,000 in the first few days of November.

“I see lots of election volatility fear posts popping up and I don’t think the fear is unfounded, but I do think that election volatility will rear its head from higher up.”

Bitcoin is trading at $72,054 at time of writing.

Concluding with popular meme asset DOGE, the trader says its primed to go higher after enjoying an accumulation period of over two years.

“Many will succumb to selling DOGE too early, despite getting in at these low levels.

This is a consequence of 874 days of accumulation, recondition your brain, bullieve in something.”

Dogecoin is trading at $0.171 at time of writing.

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