Bitcoin Struggles to Stay Above $65,000 Amid Market Volatility and Political Uncertainty
Bitcoin (BTC) Struggles to Stay Above $65,000 Amid Market Volatility
Bitcoin (BTC) faced a turbulent day in the cryptocurrency market as it struggled to stay above $65,000, following a drop below $64,000 during Wednesday’s American trading hours. After briefly reclaiming the $65,000 mark, BTC drifted towards $64,500, marking a 1% decrease from 24 hours ago. The CoinDesk 20 Index also experienced a 2.4% decline.
The halt in Wednesday’s rally can be attributed to an equity market sell-off, with the tech-heavy Nasdaq index plummeting by 2.7% and the S&P 500 falling by 1.3%. Joel Kruger, a market strategist at LMAX Group, noted that the crypto rally could stall if the stock market sell-off escalates into a correction. However, over a longer time frame, Bitcoin may serve as a safe haven for investors seeking refuge from the stock market turmoil.
In a surprising turn of events, the likelihood of President Joe Biden dropping out of November’s election surged to 68% on the crypto-based prediction market platform Polymarket. This spike followed Biden’s announcement of testing positive for Covid-19 on Wednesday, prompting speculation about his ability to continue his presidential campaign. Biden’s perceived vulnerability has been further exacerbated by his lackluster performance during the campaign, particularly in a debate against Donald Trump, who is viewed as the more crypto-friendly candidate. Trump’s rising chances of victory have become a key indicator for the cryptocurrency market, influencing Bitcoin’s recent rally above $65,000.
Additionally, several cryptocurrencies experienced significant losses in the aftermath of a malicious attack on the Indian crypto exchange WazirX. The platform’s native token WRX plummeted by 15% to just over 14 cents, while meme coin Shiba Inu (SHIB) slumped nearly 10%. The attacker managed to abscond with over $230 million in customer funds, including $100 million in SHIB and $52 million in ETH. Other tokens remained relatively stable in dollar terms but suffered substantial losses in Indian rupee-denominated pairs. The bitcoin-rupee pair on WazirX dropped by 11% to 5.1 million rupees ($60,945), presenting a significant discount compared to rival exchange CoinDCX. Meanwhile, the USDT-INR pair on WazirX experienced an 8% decline.
The cryptocurrency market continues to face volatility and uncertainty, with Bitcoin’s performance closely tied to external factors such as stock market movements and geopolitical events. Investors are advised to exercise caution and closely monitor developments in the market to make informed decisions.
