The current prices for major cryptocurrencies and traditional assets are:
- CoinDesk 20 Index: 2,062.17 -3.66%
- Bitcoin (BTC): $70,079.42 -3.1%
- Ethereum (ETH): $2,519.63 -4.34%
- S&P 500: 5,705.45 -1.86%
- Gold: $2,752.82 +0.38%
- Nikkei 225: 38,053.67 -2.63%
Bitcoin’s price has been volatile in recent days, with the cryptocurrency experiencing a decline of around 3% in the last 24 hours. Despite this, it has managed to recover some losses and return to the $70,000 mark during the European morning.
However, altcoins have suffered greater losses, with the CoinDesk 20 Index’s measurement of the broader crypto market down over 3.5%. The reasons for this decline are varied, but possible explanations include:
- Profit-taking: With the rally earlier in the week, some investors may be taking profits and selling their holdings.
- Donald Trump’s election victory odds on Polymarket: A dip in Donald Trump’s odds of winning the election has led to a decrease in demand for cryptocurrencies.
- Tech earnings: The performance of tech companies in recent days has been closely watched by traders, who have been looking for signs of growth or decline.
- Tensions between Iran and Israel: Geopolitical tensions have always had an impact on the crypto market, with investors becoming increasingly risk-averse during times of uncertainty.
- Sharp rise in U.K. gilt yields: The recent increase in gilt yields has led to a decrease in demand for cryptocurrencies.
Quinn Thompson, founder of crypto hedge fund Lekker Capital, noted that traders have been looking at these factors and adjusting their positions accordingly: "Traders have been looking at tech earnings, tensions between Iran and Israel, and the sharp rise in U.K. gilt yields following the roll-out of the government budget earlier this week."
Short-term Holders Sell Bitcoin
As the price of bitcoin dropped below $70,000 on Thursday, short-term holders sent more than $2.3 billion (32,000 BTC) to exchanges at a loss. This was the most significant panic selling since August 5’s yen carry trade unwind.
It’s worth noting that short-term holders tend to panic and sell when the price drops and buy when there is euphoria or greed in the market. In total, they sent over 54,000 BTC to exchanges on Thursday, the highest amount since March 27.
Hedging Positions on Polymarket
The odds of Kamala Harris winning next week’s U.S. presidential election are rising on betting platform Polymarket, with some observers suggesting that this reflects hedging positions among traders who have also bet on a victory for Donald Trump.
Harris’ odds have risen to almost 39% from 33% on October 30, while Trump’s odds have dropped in tandem, suggestive of lower expectations of him winning. However, he is still the preferred candidate, with a 61% chance of victory.
Market observers suggest that this increase in Harris’ odds could reflect traders buying her shares as a hedge on their Trump bets: "The increase in the price for Harris’ shares could reflect traders buying them as a hedge on their Trump bets," said one observer. "As some allege reports of voting irregularities pitted against Trump, this could influence market bets."
Ethereum Futures Funding Rates
The funding rates metric measures the aggression of buyers versus sellers in the futures market. According to CryptoQuant, Ethereum futures funding rates are showing a slight upward trend, which may reflect renewed bullish sentiment.
Despite the recent uptick, the levels remain way below those seen in March: "Higher funding rates would not only confirm participants’ willingness to go long on Ethereum but would also add upward pressure on the price, potentially leading to a stronger and more sustained rally," CryptoQuant wrote.
The crypto market is known for its volatility, with prices fluctuating rapidly due to various factors. In this article, we’ve discussed some of the key events that have impacted the market in recent days, including profit-taking, changes in election odds on Polymarket, and geopolitical tensions.
As investors continue to navigate these uncertain times, it’s essential to stay informed about the latest developments and adjust your positions accordingly. Whether you’re a seasoned investor or just starting out, understanding the factors that drive market movements is crucial for making informed decisions.
Here are some trending posts from around the web:
- MicroStrategy Remains One of the Best Ways to Gain Exposure to Bitcoin Given Its Intelligent Leverage Strategy: Canaccord
- DeFi to Have ‘Walled Garden’ Moment as Internet of Money Matures: dYdX’s D’Haussey
- SEC Goes After Another Crypto Firm, Slaps Immutable With Wells Notice
These posts offer valuable insights into the latest trends and developments in the crypto market. Be sure to check them out for more information.
The crypto market is constantly evolving, with new developments emerging daily. In this article, we’ve discussed some of the key events that have impacted the market in recent days, including profit-taking, changes in election odds on Polymarket, and geopolitical tensions.
As investors continue to navigate these uncertain times, it’s essential to stay informed about the latest developments and adjust your positions accordingly. Whether you’re a seasoned investor or just starting out, understanding the factors that drive market movements is crucial for making informed decisions.
Stay tuned for more updates from CoinDesk and follow us on social media for the latest news and analysis in the crypto space!
