October proved to be a promising month for Bitcoin, experiencing a significant uptrend with a 13% increase in its value, climbing from $58,000 to an impressive $73,000. However, the digital currency recently encountered a setback, dropping by 4% to hover around $69,000. This unexpected dip coincides with changing political dynamics as election odds for crypto advocate Donald Trump decline against Vice President Kamala Harris on Polymarket. This has prompted speculation about whether this political shift may trigger further declines in Bitcoin’s value.
Impact of Political Shifts on Bitcoin
Polymarket, a well-regarded prediction platform, has recently indicated a decrease in Donald Trump’s chances of securing the 2024 U.S. Presidential election, with his odds falling to 61.9%. Meanwhile, Kamala Harris has experienced a rise in her odds to 37.9%. Sean Farrell, the head of digital-asset strategy at Fundstrat Global Advisors, suggests that Trump’s waning odds could introduce a layer of uncertainty for investors. Trump has been a vocal proponent of positioning the U.S. as a leader in cryptocurrency, while Harris advocates for a more balanced approach to regulation. This adds a layer of complexity in contrast to President Joe Biden’s more cautious stance, further intensifying the concerns within the crypto community.
Decline in Bitcoin Network Activity
Another concerning trend for Bitcoin is the noticeable decline in investor interest, as reflected by the decrease in active addresses on the Bitcoin network. Currently, active addresses have dwindled to approximately 734,000, a significant 25% reduction from the peak of 986,000 recorded in March. This suggests that many investors are adopting a wait-and-see approach, potentially holding back their investments until the election results are announced on November 5, which could catalyze significant market movements.
Monitoring Key Bitcoin Support Levels
In the face of Bitcoin’s current struggles, it is crucial to keep an eye on the next significant support level, which is $68,958. Should Bitcoin’s price fall below this threshold, analysts caution that a more pronounced decline might ensue, potentially revisiting levels around $65,099 or even as low as $63,364. A breach of the $68,958 mark could trigger an 8% to 13% price decrease. Currently, Bitcoin is trading at approximately $69,439, marking a 4% decline over the past 24 hours.
This evolving scenario underscores the importance of staying informed about both political developments and key market indicators, which can have a profound impact on Bitcoin’s trajectory in the coming weeks.
