Bitcoin hovers above $68,500 as weekend dip prompts $230 million in liquidations before US election
2024-11-04

Cryptocurrency exchanges experienced a surge in long liquidations of traders positions over the weekend, as the price of bitcoin dropped over 4% from a high of over $71,000 on Friday to now hover above the $68,500 mark.
In the past day, total liquidations across centralized exchanges amounted to over $230 million, with the majority being long positions at around $150 million liquidated as prices traded down, according to data from Coinglass. Bitcoin was the leading cryptocurrency in terms of liquidations, with almost $51 million liquidated in the past 24 hours.
Analysts at QCP Capital noted that bitcoin’s sideways price action and a reduction in leveraged perpetual futures positioning, from $30 billion to $26 billion across exchanges, suggest a cautious market. This caution likely stems from anticipation around important events this week, including the U.S. presidential election on Tuesday and the Federal Open Market Committee (FOMC) meeting on Thursday.
Regarding the upcoming U.S. presidential election this Tuesday, candidates Kamala Harris and Donald Trump are in a close race, with odds on Polymarket moving closer to recent polling estimates. Although Polymarket still favors Trump with a 55% likelihood of winning, his odds have fallen sharply from 66% just a week ago.
As for the Federal Reserve’s interest rate decision on Thursday, the CME FedWatch tool indicates a 98.1% probability of a 25 basis-point rate cut.
End-of-month optimism observed in bitcoin options
In the options market, QCP Capital reports increased buying of $75,000 call options set to expire at the end of November, reflecting growing demand for upside exposure. Election-day-related options have also risen, with implied volatility surging, analysts noted.
"We expect the spot price of bitcoin to chop around the current range until we get more clarity on the election results this week, where a Trump win is likely to cause a knee-jerk reaction higher, and vice versa if Kamala wins," the QCP Capital analysts added.
In the broader cryptocurrency market, bitcoin was last changing hands for around $68,500, trading flat over the past 24 hours, according to The Block's Price Page. Meanwhile, the GMCI 30 index, representing a selection of the top 30 cryptocurrencies, has risen roughly 0.58% over the past 24 hours to 120.65.
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