Markets
What’s Behind Bitcoin’s Fall Below $66,000
Bitcoin has lost 5.7% in the past 12 hours or so, shedding $4,000 and falling from $70,000 to just under $66,000 in early Asian trading on Tuesday, where it found support.
However, it remains within a five-month gap channel that formed in late February.
Analysts are looking for clues that could explain the sudden drop in market sentiment after the asset hit a seven-week high.
Political polls or US government moves?
On July 30, cryptocurrency trader and economist Alex Krüger noted that prices and euphoria were skyrocketing on Monday in the wake of Trump’s speech, with BTC reaching $70,000“and then wham -5% in a straight line.”
He said it might have something to do with the Democratic presidential candidate My life is nice performing well in the polls.
“If you try to rationalize the move, I would say it was partially a reflection of the fact that Kamala is doing very well in the polls (polls, not betting markets). Trump’s trade is long Bitcoin and long small caps. Kamala’s trade is the opposite.”
Second According to The Hill, Trump’s lead in the polls had shrunk to just 1.5% as of July 30, with 47.6%, compared to rival Harris’s 46.1%.
Another factor in the decline was the United States government in movement around 29,800 BTC worth around $2 billion on July 29. This comes just a few days after Donald Trump said that I wouldn’t sell none of the government’s Bitcoin reserves if elected.
The US government now holds 183,438 BTC worth approximately $12.5 billion, second to Arkham Intelligence.
In a July 30 post on X, cryptocurrency analyst “Inmortal” opined that the decline was not necessarily a bad thing.
“But the best thing that could happen to us is further consolidation. The more consolidation, the more expansion.”
Elsewhere on the cryptocurrency markets
Total market cap is down about 4.4% to $2.48 trillion at the time of writing. However, it has also remained largely sideways over the past five months.
In early trading in Asia on Tuesday, Ethereum fell from nearly $3,400 to around $3,260 before recovering and reclaiming $3,300.
As usual, other altcoins were hit the hardest, with Solana (SOL), Cardano (ADA), Avalanche (AVAX), and Near Protocol (NEAR) seeing the biggest losses.