Tue, November 5

Is the U.S. Election Fueling Bears to Drive Bitcoin Down?

Is the U.S. Election Fueling Bears to Drive Bitcoin Down? Bitcoin News
  • Bitcoin is priced at $68,344, down 1.09%, with trading volume up 24.89%.
  • U.S. 2024 election impacts market sentiment and ETF flows.

Bitcoin (BTC) is currently priced at $68,344, showing a 1.09% decline over the last 24 hours. The 24-hour trading volume surged 24.89% to $41.18 billion, underscoring renewed market interest. BTC’s market cap is $1.35 trillion, maintaining a dominance of 3.05%. Market attention is also on the circulating supply, totaling 19.78 million BTC. 

The price trends show increased engagement, driven by the political backdrop of the U.S. 2024 presidential election, which continues to shape market sentiment. Consequently, this reflects a shift in capital flow ahead of the election.

U.S. BTC ETFs saw a record $540.9 million outflow, the second-largest ever. 21Shares (ARKB) and Bitwise (BITB) faced their largest outflows since inception, signaling investor caution. However, BlackRock’s IBIT ETF attracted 569 BTC inflow, equating to $38.6 million. From October 28 to November 1, BTC ETFs recorded a net inflow of $2.22 billion over four of five trading days. 

Bitcoin In Today’s Market

Bitcoin’s whale activity remains significant. Major transactions include 2,000 BTC ($135.8 million) and 2,100 BTC ($142.9 million) moved between unknown wallets, indicating strategic shifts. Other transfers of 1,837 BTC ($124.9 million) and 1,600 BTC ($108.8 million) added volatility, influencing market trends.

Technical indicators reveal resistance at $69,011 and support at $68,108. Breaking past $69,011 could see BTC pushing towards $71,250, continuing its bullish pattern. The Relative Strength Index (RSI) at 42.63 indicates the asset is nearing neutral territory. The moving average (MA) shows a bearish crossover at $68,438, signaling potential short-term resistance. These crossovers could imply an upcoming consolidation phase or a trend shift.

A significant move in Bitcoin adoption came when a British pension fund incorporated BTC into its portfolio, marking a first for the industry. This decision signals growing institutional interest and acceptance of Bitcoin as a viable investment, diversifying traditional portfolios beyond stocks and bonds. 

BTC faces a complex interplay of political drivers, ETF flows, and whale activity. Technical indicators point to potential gains if resistance breaks, though upcoming political decisions may heavily impact momentum. Investors should stay alert as BTC’s path remains influenced by multifaceted factors.

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