Bitcoin took a hit, dropping 6.7% from Oct. 31 to Nov. 4, dipping below $67,500 for the first time in over a week. This slump led to $190 million in leveraged long positions being liquidated, coinciding with uncertainty around the Nov. 5 US presidential elections.
Despite the downturn, Bitcoin derivatives metrics suggest the market isn't panicking. Key indicators like the long-to-short ratio of top traders and stablecoin demand in China show confidence in a price rebound. However, traders are cautious about pushing Bitcoin above $70,000, partly due to potential regulatory scrutiny if Kamala Harris wins. Overall, the market remains moderately bullish, awaiting post-election clarity.