Bitcoin (BTC) slipped below $70,000 as markets turned bearish after the world’s premier cryptocurrency briefly teased a new all-time high earlier in the week. BTC is currently down over 4% and is trading around $69,300. Almost all major cryptocurrencies are in the red as markets tumble after a bullish few days as the US elections draw nearer.
Major cryptocurrencies in the red include Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), Toncoin (TON), Cardano (ADA), Chainlink (LINK), and Polkadot (DOT). The overall crypto market also registered a substantial decline of almost 4%, currently at $2.34 trillion. Speaking about the drop in the crypto market, ChangeNOW CMO Pauline Shangett stated,
“We're seeing a classic ‘sell-the-news’ event, where heightened expectations drove prices up earlier in the week, only to trigger a correction as investors lock in gains ahead of potential election volatility. The current pullback is a reminder of the market’s fragility amid ongoing macro pressures.”
BlackRock ETF Records Biggest Day Of Inflows Since Launch
BlackRock's IBIT ETF registered its biggest day of inflows since its inception, pulling in inflows of over $875 million on October 30. The figure eclipsed IBIT’s previous high of $849 million set in March. IBIT has now registered 13 consecutive days of inflows, totaling over $4 billion. Some traders are confident IBIT will see a billion-dollar inflow day sooner rather than later. BlackRock’s performance also eclipsed all other US spot Bitcoin ETFs, which registered a combined $21 million in inflows. Fidelity Wise Origin Bitcoin Fund registered the second-highest inflows with just over $12 million, while the Bitwise Bitcoin ETF registered outflows of around $24 million.
With the crypto market registering a sharp decline, analysts are hopeful the US presidential elections could spur a recovery and push BTC to a new all-time high. However, they cautioned traders against market volatility and urged them to time their trades to prevent substantial losses.
A Friendlier Post-Election Washington?
While the crypto space has butted heads with the Biden administration several times in recent years, market executives expect a much friendlier Washington, irrespective of election results. Donald Trump, who fought the election promising a crypto-friendly government, was countered by Democratic nominee Kamala Harris, who also promised clear and friendly crypto regulations. Keeping recent developments in mind, crypto asset managers such as Bitwise and Canary Capital are already planning new products. Ripple is also planning a fresh push for crypto legislation in Congress.
“Regardless of who wins, there will be a new approach to how we move forward with crypto.”
Harris is yet to outline her approach to crypto, but market watchers expect her to be friendlier than the current Biden administration. Harris’s crypto plans were supported by billionaire Mark Cuban, who stated he was confident of a friendlier administration under Harris, adding that her promise to protect crypto was crucial. However, he was critical of current SEC Chair Gary Gensler and the crypto crackdown under his watch.
SEC Chair Gensler is adamant the crypto industry poses a significant risk to investors, citing the collapse of FTX and multiple bankruptcies. As a result, the Securities and Exchange Commission brought enforcement action against major players in crypto, including Coinbase and Kraken, accusing them of flouting norms and failing to inform investors about potential risks. Gensler’s term ends in 2026, and while Trump has stated he will fire Gensler if elected to office, Harris has not outlined any plans to replace him.
Trump’s pro-crypto stance has won him support from major players in the crypto ecosystem, including Gemini founders Tyler and Cameron Winklevoss. However, Ripple chairman Chris Larsen and several Democratic-aligned crypto groups have thrown their weight behind Harris.
MicroStrategy’s Bitcoin Plan
Michael Saylor’s MicroStrategy has unveiled an ambitious plan to raise $42 billion over three years to purchase more BTC. The company plans to raise $21 billion from stock sales and $21 billion from bonds to potentially allow the company to acquire around 578,586 BTC going by current prices, a staggering 2.7% of the total supply. MicroStrategy CEO Phong Le stated the approach will enhance the company’s BTC investment returns. The company has reported a 17.8% yield on its BTC holdings in 2024, with projected annual returns between 6% and 10% from 2025 to 2027.
“So @MicroStrategy wants to buy $42B in Bitcoin in the next three years and you are bearish? To date, they have purchased 250k+ BTC for $9.9B at an average cost of $39.2k/BTC.”
Market Euphoria Eases
The recent optimism in the markets cooled on Thursday as BTC, stocks, and gold fell considerably after Personal Consumption Expenditures (PCE) numbers aligned with expectations and failed to impact the outlook on interest rate cuts scheduled for November. The core PCE for September, excluding food and energy prices, rose by 2.7%, slightly higher than the expected 2.6%. Meanwhile, initial jobless claims dropped by 12,000 to a five-month low of 216,000 against an estimated 230,000. The PCE data was the final inflation data ahead of the Federal Reserve’s decision on interest rate cut next week.
However, the Fed must consider a final monthly report that will be released on Friday before any announcement regarding an interest rate cut. Matt Mena, a Crypto Research Strategist at 21Shares, stated,
“Today’s PCE numbers, coming in as expected, have reinforced the dovish sentiment sparked by last month's FOMC rate cut, boosting confidence that the Fed is on the right track to cooling inflation. This supportive backdrop has given Bitcoin a notable lift as investors gravitate toward risk assets, anticipating a continued accommodative approach from the Fed. Bitcoin had already factored in this positive outlook, closing above $72,000 last night—a level it has only reached once before when it hit its all-time high of $73,700 in March of this year. This shift in sentiment is also reflected in Bitcoin ETPs.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) dipped below $70,000 as markets turned bearish following the release of PCE data. BTC continues to face resistance at higher levels, causing buyers to lose momentum after coming close to setting a new all-time high. BTC almost set a new all-time high on Tuesday when it surged to an intra-day high of $73,512 before losing momentum. With job numbers set for release on Friday, analysts expect market volatility to increase. With the support at $70,000 broken, analysts expect a certain amount of support at $68,000, which is also where the 20-day SMA is currently located. Should sellers breach this level, BTC could drop to $65,000. BTC’s dip comes as traders sold off equities, with the Nasdaq and the S&P 500 registering their worst day in over a month after tech companies like Meta and Microsoft stated they would spend more to meet growing AI demand.
Source: TradingView
BTC is currently down almost 4% as sellers look to drive the price lower. As we can see in the price chart, BTC started the week on a bullish note after an increase of 1.22% on Sunday, pushing the price to $67,972. BTC surged past $68,000 and $69,000 on Monday as it rose to $69,761 after an increase of 2.63%. Bullish sentiment intensified on Tuesday as BTC rose above $70,000 and settled at $72,627 after a 4.11% increase. It also teased a new all-time high when it peaked at $73,512 but lost momentum and fell back. With strong resistance at this level, buyers lost momentum, and BTC fell back marginally on Wednesday, dropping to $72,358.
Bearish sentiment intensified on Thursday as sellers drove BTC below $72,000. The price eventually declined by 2.84% and settled just above $70,000 at $70,384. The current session has seen BTC continue its decline, having slipped below $70,000. Currently, BTC is down by 1.44% and trading around $69,300. Buyers will look to keep BTC above $69,000 and consolidate and reclaim the $70,000 level. If sellers can push BTC below $69,000, we could see a drop to $68,000, where it will find some support. The next level of support sits around $65,000. With analysts expecting market volatility as the US elections draw closer, we could see BTC recover from current levels and push above $70,000. Market watchers expect BTC to set a new all-time high and move to $80,000 in November.
Ethereum (ETH) Price Analysis
Ethereum (ETH) registered a significant decline on Thursday, going below crucial support levels and moving averages. ETH bulls are struggling to keep it above $2,500 as sellers continue to exert control. As we can see in the price chart, ETH was quite bullish over the weekend and at the beginning of the week, rising by 1.71% and 1.04% over the weekend to go above the 50-day SMA and $2,500 and settle at $2,505. Sellers attempted to drag ETH back below $2,500 on Monday as it fell to a low of $2,470. However, it quickly recovered from this level and registered an increase of 2.43% to push above $2,500 and the 20-day SMA and settle at $2,566. Bullish sentiment persisted on Tuesday, and ETH rose by almost 3% to go above $2,600 and settle at $2,637. Buyers also attempted to push above $2,700 but could not, losing momentum after reaching an intra-day high of $2,680.
Source: TradingView
Wednesday saw a substantial increase in volatility as buyers attempted to go above $2,700 and sellers attempted to drag the price back below $2,600. As a result, ETH dropped to a day low of $2,599 before recovering and reaching a day high of $2,722. However, it could not stay above this level and fell to $2,659, registering an increase of 0.81%. With markets turning bearish on Thursday, ETH registered a substantial drop of 5.35%, slipping below the 20 and 50-day SMAs and settling at $2,515. The current session sees ETH remain in the red, down marginally and trading just above $2,500.
Sellers will look to drive ETH below $2,500, having already pushed it to a low of $2,466 earlier in the session. However, buyers are expected to defend this level and prevent a further decline. If this level is breached, ETH could drop to its next level of support at $2,400.
Solana (SOL) Price Analysis
Solana (SOL) slipped below $170 on Thursday as market sentiments changed and selling pressure intensified. SOL was bullish until midweek but turned bearish after a move past $180 failed to materialize. The Ethereum killer registered a substantial increase over the weekend, rising by 3.60% on Saturday and 3.42% on Sunday to push above $170 and settle at $176. However, bullish sentiment waned on Monday due to selling pressure. As a result, SOL dropped to a day low of $172 before recovering to register an increase of 0.96% and settle at $178.
Source: TradingView
SOL attempted to go past $180 on Tuesday, reaching an intra-day high of $183. However, it lost momentum and fell below $180, registering a marginal increase to settle at $170. Bearish sentiment returned to the market on Wednesday, and SOL dropped by 2.44% to $174. Thursday saw SOL drop below $170, a crucial support level, as sellers drove the price down by almost 4% to $168. The current session sees sellers remain in control, with SOL down nearly 2% and trading at $165. If sellers retain control, SOL could drop below the 20-day SMA to $160. However, buyers will look to mount a recovery and push back above $170. Should this occur, we could see SOL retest $180.
Ripple (XRP) Price Analysis
Ripple (XRP) made a strong recovery after dropping to a low of $0.48 last Friday. It recovered over the weekend, rising by 2.35% on Saturday and 0.58% on Sunday to push above $0.50 and settle at $0.516. XRP remained positive on Monday but could register only a marginal increase as it moved to $0.518. Buyers attempted a move past the 20-day SMA on Tuesday as XRP rose to an intra-day high of $0.531. However, buyers lost momentum at XRP fell marginally to settle at $0.527 after an increase of 1.72%.
Source: TradingView
XRP fell back into the red on Wednesday, dropping by 1.02% and settling at $0.522. Bearish sentiment intensified on Thursday as sellers attempted to drag XRP below $0.50. As a result, XRP fell to $0.502 before recovering and settling at $0.509. The current session sees XRP marginally up but facing considerable volatility as buyers and sellers struggle to establish control, with the price at $0.511.
Chainlink (LINK) Price Analysis
Chainlink (LINK) has declined substantially as broader markets fell, with the price slipping below key moving averages. LINK started the week on a bullish note, rebounding from an intra-day low of $10.70 on Monday and settling at $11.18 after an increase of 1.88%. Bullish sentiment intensified on Tuesday as LINK surged past the 20 and 50-day SMAs and settled at $11.78 after an increase of 5.37%. Buyers remained in control on Wednesday, pushing LINK past $12 to 12.40, rising by 5.25%. However, LINK could not go higher thanks to resistance at $12.50.
Source: TradingView
As a result, LINK fell back on Thursday, dropping over 8% to slip below $12 and settling at $11.40, just above the 20 and 50-day SMAs. LINK has declined during the current session and has gone below the 20 and 50-day SMAs. LINK fell to a low of $11.21 earlier during the session but has since risen to $11.33. If sellers continue to control the session, LINK could drop to $11, a level that should attract buyers and prevent a further decline.
Artificial Superintelligence Alliance (FET) Price Analysis
Artificial Superintelligence Alliance (FET) has declined for the third consecutive day, slipping below $1.30 after a day of considerable volatility. FET made a strong recovery over the weekend after registering a substantial decline last Friday, rising by 2.22% on Saturday and just over 3% on Sunday and moving to $1.27. FET faced considerable selling pressure on Monday as the week began with a drop to an intra-day low of $1.18. However, FET recovered thanks to strong lower-level demand and registered a marginal increase to settle at $1.27. Bullish sentiment persisted on Tuesday as FET rose by 4.53% and moved to $1.33.
Source: TradingView
However, with the 20-day SMA coming into play as resistance, FET fell by almost 3% on Wednesday to slip below $1.30 and settle at $1.29. The price experienced considerable volatility on Thursday as buyers and sellers struggled to establish control. Ultimately, sellers gained the upper hand, and FET registered a marginal drop. The current session sees FET remain in the red, with the price down by 3.37% and trading at $1.25. Should sellers retain control, FET could drop to its support level of $1.20.
Render (RNDR) Price Analysis
Render (RNDR) started the week facing considerable volatility as it dipped to an intra-day low of $4.63 on Monday. It recovered from this level thanks to lower-level demand and registered an increase of 0.98% to settle at $4.91. Bullish sentiment increased on Tuesday as RNDR moved past $5 after rising 4.41% and settled at $5.13. However, despite the strong push, it could not go above the 20-day SMA. With the 20-day SMA coming into play as a dynamic level of resistance, RNDR fell into the red on Wednesday, dropping over 3% and slipping below $5 to settle at $4.96.
Source: TradingView
Bearish sentiment intensified on Thursday as RNDR fell to an intra-day low of $4.65 before recovering and settling at $4.76, a drop of just over 4%. The current session sees RNDR remain in the red, with the price down by almost 1% and trading at $4.72. If sellers continue to control the session, RNDR could drop to $4.50. On the other hand, if bulls regain control, we could see an attempt to push above $5 and the 20-day SMA.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
