Bitcoin price After rising rapidly, it is now moving in the opposite direction. At the time of writing, the price had dropped to $67,670. Gradually losing key levels, BTC will likely continue to weaken in the shadow of the election. Profit taking has reached serious levels and altcoins are seeing losses exceeding 5 percent.
Bitcoin Falls
Due to the new US President to be announced on Tuesday, everyone started to reduce the risk of cryptocurrencies. Jumping above $73,000, BTC saw over $2 billion in short-term investor selling on Thursday. This reflects the expectation that larger peaks will not be visible. While Trump’s winning rate on crypto prediction platforms is decreasing, BTC decline continues.
ETF inflows likely trumpIt triggered a surge in his potential to win the election. The problem here is that the probability of being elected is getting weaker as the date when the results will be announced is approaching.
In his latest assessment, Mustache wrote that a test between $64,000 and $66,000 might make sense for Bitcoin. He thinks the next few days will be decisive.
Benjamin Cowen reminds us that he had previously warned about new altcoin bottoms.
“I wrote that altcoins would sweep the bottom in the BTC parity and their rise would not last long. This is happening now, those promoting the memecoin dump will act like it’s not happening.
“Don’t waste all your money chasing garbage memecoins, the people who constantly promote them will not care if you lose all your money trading with them and you will see that they will continue to promote different projects in just a few months.”
The third analyst, Titan of Crypto, wrote that there may be a bottom at $66,200 before new highs.
“BTC failed to close above Tenkan, signaling a possible deeper pullback. “If the breakout is confirmed, we could see Kijun retested around $66,200, which could indicate a local bottom.”
US Government Spending and Bitcoin
increasing debt crypto- It may enable currencies to regain their place on the agenda. However, Buffet has built up a historic record cash reserve and is preparing for a recession. Buffet, who holds more bonds than the Fed, believes that cash will be more useful in the economy in the future. This is not good for cryptocurrencies.
The Kobeissi Letter used the expression “crisis” today, paying attention to the increasing public expenditures.
“Federal government spending increased 9.7% in the 3rd quarter of 2024 compared to the previous quarter, the largest jump since the 1st quarter of 2021.
This increase was driven by the 14.9% increase in defense expenditures, which is the biggest jump in the last 21 years. Since 2020, government spending has increased by 30%, setting a new record at $5.04 trillion. Federal spending has been one of the largest contributors to GDP growth in the last 2 years. The government has contributed to economic growth for 9 consecutive quarters so far, with the 3rd quarter making the biggest contribution in the last year. Government spending is at crisis levels.”
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
