Bitcoin's price has experienced a notable decline, dropping below $70,000. The slide follows Bitcoin reaching a peak of $73,620 before falling to $68,830. Analysts have attributed this downturn to several factors, most notably risk-off sentiment related to the US election. Former President Trump, a cryptocurrency advocate, losing ground to Kamala Harris has heightened market caution.
The correlation between Bitcoin and traditional markets like the S&P 500, which has also seen downward movements, further influenced Bitcoin's decline. This risk aversion by investors is common ahead of significant events, such as the upcoming elections.
Another significant factor is the unwinding of leveraged positions in the crypto market. These market corrections, described as healthy, reflect an overextension. Analysts note that the lead-up to the election has seen a notable flush out of leveraged positions, contributing to Bitcoin's price drop.
