Currently, the political and financial situation globally is becoming increasingly complex. Alongside this, the upcoming US elections create significant instability for the cryptocurrency market, particularly Bitcoin (BTC). Currently, BTC is fluctuating around $70,200, raising concerns within the crypto community about a potential major crash. Below is an analysis of the factors affecting the cryptocurrency market and the risks investors may face.
1. BTC and the August Pattern: Will History Repeat Itself?
The phenomenon of BTC reflecting price behavior from August has attracted the attention of many analysts. Previously, in August, BTC experienced a strong price drop that caught many traders off guard. With the current price behavior of BTC, the possibility of another crash cannot be ruled out, especially as political factors like the US elections are creating pressure on the market.
Many new traders may not be familiar with how "whales"—large investors in the market—can manipulate prices. These sudden fluctuations can lead to panic sell-offs, causing widespread effects across the crypto market.
2. The Role of Whales and Risks from Volatility
Large investors often have the ability to create short-term price fluctuations, causing BTC prices to drop to accumulate at lower levels. In the context of the US elections, changes in financial policies or announcements about new regulations could increase BTC's volatility.
Additionally, any changes in financial policies or regulations related to cryptocurrencies could have a significant impact. This opens up a risky environment for investors, especially as pressure from external factors like the US elections may influence the behavior of "whales."
3. Caution with Long-Term Positions: A Warning 🚨
Given the current instability, many analysts warn to be cautious with long-term positions. Accordingly, BTC faces the possibility of a significant price drop in the short term, with a very low chance (around 2%) of reaching a new all-time high. The upcoming days could be a sensitive period for the cryptocurrency market, as signs indicate that a sharp decline may occur within the next few days.
4. Conclusion: A Time for Cautious Action
In light of the unstable market situation and the upcoming US elections, maintaining a solid mindset and acting cautiously is essential for investors. Monitoring market signals while avoiding impulsive trading decisions can help preserve assets and weather this storm. Keeping a risk-averse perspective will enable better coping during the current sensitive period before the market returns to a more stable state. At this time, consider carefully before making investment decisions, and always have a clear risk management plan.