As the U.S. presidential election looms, the crypto market is reacting with volatility. On November 3, Bitcoin saw a sharp price dip below $69,000, triggering massive liquidations that nearly hit $350 million. Traders appear anxious as the United States gears up for its November 5 election, with political uncertainty and market instability going hand in hand.
According to data from CoinGlass, a total of $349.8 million was liquidated across the crypto market. Long bets accounted for $259.7 million, while short positions saw $90.1 million in liquidations, marking the largest liquidation day since October 25, when Bitcoin failed to break through the $70,000 level.
Bitcoin’s price has experienced wide fluctuations over the past week. Starting at $67,700 on October 28, it reached a high of nearly $73,300 on October 29, only to tumble to a low of $67,719 on November 3. After a brief recovery, Bitcoin is now trading at around $69,145, as per CoinGecko.
The volatility in the Bitcoin market comes as the odds between U.S. presidential contenders Donald Trump and Kamala Harris narrow on the crypto betting platform, Polymarket. In early October, Trump surged ahead of Harris, with his odds peaking at 67% on October 30. However, recent data shows Trump’s lead narrowing, with his odds now at 56%.
The crypto community generally views Trump as the more favorable candidate for the industry. Trump has made several promises to bolster the sector, including plans to fire SEC Chair Gary Gensler and position the U.S. as the global hub for cryptocurrency. On the other hand, Democratic candidate Kamala Harris has adopted a more measured approach, advocating for a regulatory framework for digital assets.
Trump’s current odds on Polymarket now align more closely with national polling data. As of November 3, Harris held a slim 0.9 percentage point lead, according to FiveThirtyEight, reflecting a close race.
Many crypto traders are speculating that Bitcoin could surge to $100,000 if Trump wins the election, while a Harris victory could cause the price of Bitcoin to drop significantly by the end of the year. Analysts from Bernstein have echoed these sentiments, pointing to market uncertainty as a key driver.
Crypto trader Daan Crypto Trades predicts that Bitcoin could experience at least a 10% price movement in either direction, depending on the outcome of the election.
