Bitcoin and Ethereum Drop Amidst Market Volatility: Key Factors at Play
Today, Bitcoin (BTC) and Ethereum (ETH) have both faced declines, with BTC down about 3.1% to $66,942 and ETH dropping approximately 3.5% to $2,378. Several key factors contribute to this downturn:
1. U.S. Election Uncertainty: With the upcoming U.S. presidential election, market volatility has increased. Speculation over shifting political landscapes and fading re-election chances for certain candidates has created market pressure, impacting crypto prices as investors grow cautious.
2. Rising Liquidations and Selling Pressure: High selling pressure, particularly from short-term holders, coupled with a surge in open interest, has resulted in significant liquidations. Notably, Ethereum saw $55 million in liquidations, and Bitcoin reached $90 million, the highest since August.
3. Ethereum Underperformance: Ethereum has notably underperformed against Bitcoin, with the ETH/BTC pair at its lowest in over three years. This indicates a potential shift in investor preference towards Bitcoin over Ethereum, further contributing to ETH's downward momentum.