Bitcoin prices are rebounding from 10-day lows as traders try to gauge short-term direction amid a “liquidity hunt” after reaching near-all-time highs last week.
The asset traded relatively flat on the day at around $67,500, after falling to just $65,160 on Thursday, according to CoinGecko data.
This comes as the price of Bitcoin topped $69,000 on Sunday, leaving the asset’s all-time high set on March 14 at just over $73,700.
This has led some experts to speculate that this week’s decline in assets may have been short-lived.
Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital, said: “We don’t necessarily think this is related to a change in expectations for the US election, but after last week’s strong rally. “We think it’s a natural liquidity hunt,” said Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital.
Liquidity hunt refers to the process by which the market “flushes” leveraged positions, especially those with long-term exposure or traders who are betting on price increases.
If a trader remains leveraged for an extended period of time, price reversals can force them to sell or liquidate positions, putting downward pressure on asset prices. Mr McMillin said this was seen as a healthy correction to wipe out excess speculation before the market resumed its upward trend.
“We expect to see another test of the $70,000 resistance level soon, but a serious breakout may have to wait until the US election.”
The Nov. 5 US presidential election could be crucial for the industry, with participants saying whether former President Donald Trump or Vice President Kamala Harris will be the clearer choice for companies operating in the country. We expect that the United States will introduce favorable regulations that will serve as a guideline.
Experts told Decrypt that by that date it has already proven to be a boon for Bitcoin’s resilience.
The election remains close, with a FiveThirtyEight poll showing Trump with a slight lead, but Bitcoin prices fall from $63,000 in the final day It is expected to range between $68,000.
says Pratik Kala, portfolio manager and head of research at digital asset fund management firm Apollo Crypto.
“A decisive break above $71,000 would indicate to the market that a Trump victory is likely,” Kara told Decrypt.
This is a view echoed by others, including Singapore-based digital asset trading firm QCP Capital, which wrote in a note on Wednesday that Bitcoin remains “well supported with potential upside.” There is.
“Given President Trump’s more pro-crypto stance, it’s no surprise that Bitcoin is soaring,” the paper said.
The company noted that the election coincides with the non-farm employment report, due to be released on November 1, which is expected to show a modest increase.
“As uncertainty surrounding the labor market continues, all eyes are on next Friday’s NFP release,” QCP wrote, “as the final NFP report before the next Fed meeting, and the Fed’s next move on interest rates. will play an important role in shaping expectations for ‘fees. ”
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