October has been a bullish month for Bitcoin, with prices rising 13% from $58,000 to $73,000. But today, Bitcoin suddenly dropped 4%, currently around $69,000. This decline comes just as the election odds for cryptocurrency supporter Donald Trump slide against Vice President Kamala Harris on Polymarket. Could this election change lead to further declines in Bitcoin's price?
Trump's winning odds decline
Polymarket, a prediction market, recently indicated a decline in Donald Trump's chances of winning the 2024 U.S. election, with his odds dropping to 61.9%, while Kamala Harris's odds increased to 37.9%.
Sean Farrell, director of digital asset strategy at Fundstrat Global Advisors, noted that Trump's declining odds could create instability among investors. Trump has always supported making the U.S. a global leader in cryptocurrency, while Harris is committed to a balanced approach to cryptocurrency regulation.
This contrasts with President Joe Biden's cautious stance towards the industry, further raising concerns in the cryptocurrency community.
Active addresses decreasing on Bitcoin
Another troubling sign for Bitcoin is the decline in investor interest. Active addresses on the Bitcoin network have decreased to around 734,000, down 25% from the peak of 986,000 in March.
Many investors may be taking a cautious stance, waiting for the election results on November 5 before making significant moves in the market.
Important Bitcoin levels to watch
If the price of Bitcoin continues to struggle, the next important support level to watch is $68,958. If it drops below this level, analysts warn of a more significant decline, potentially returning to around $65,099 or even lower at $63,364.
However, a breach below $68,958 could lead to an 8% to 13% decline in Bitcoin's price. As of now, Bitcoin is trading around $69,439, reflecting a 4% drop in the last 24 hours.