Bitcoin has fallen below $55,000, reaching a three-week low due to rising macroeconomic uncertainties and geopolitical tensions. Key factors include the upcoming U.S. election, interest rate fluctuations, and escalating conflicts in the Middle East.

Over the weekend, Bitcoin dropped approximately 10%, falling under $60,000 for the first time since July 13. Total liquidations reached $620 million, with long positions accounting for 90% of this total, according to CoinGlass data.

Rich Rosenblum, co-founder of GSR, noted that while signs suggest a potential second phase of the bull market, a macro or geopolitical collapse—similar to March 2020—could heavily impact crypto assets. He indicated that such a downturn might present a strong buying opportunity as increased monetary stimulus typically follows economic distress, making assets like Bitcoin more attractive.

Political dynamics are shifting, with Vice President Kamala Harris gaining ground against former President Donald Trump, following President Biden’s exit from the race. This uncertainty, combined with tensions in the Middle East, where Israel is preparing for potential attacks from Iran and Hezbollah, adds to market volatility.

Ryan McMillin, chief investment officer at Merkle Tree Capital, pointed out that cryptocurrencies often sell off during weekends. However, he believes the worst may be over, positioning Bitcoin at the lower end of its five-month range as a potential buying opportunity.

In summary, while the crypto market faces significant challenges, the interaction of macroeconomic conditions and geopolitical developments may create future investment opportunities.

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