Bitcoin is down 4%
In the last half-day, Bitcoin has seen a sharp decline of 4%, shedding $4,000 to plunge from a peak of $70,000 to slightly under $66,000 in the early trading hours of Tuesday in Asia, where it eventually found some stability.
Nonetheless, it has continued to hover within a range that has persisted for five months, a trend that started to take shape towards February's end.
Market analysts have been probing for reasons behind the abrupt downturn in market optimism, especially after the cryptocurrency's value reached a seven-week peak.
On July 30, noted crypto trader and economist Alex Krüger highlighted that market prices and enthusiasm were at their peak on Monday following a speech by Trump, with BTC soaring to $70,000, "and then suddenly -5% in a direct drop."
He speculated that this might be closely linked to the promising performance of Democratic presidential hopeful Kamala Harris in recent polls.
As per a report by The Hill, the gap in poll numbers between Trump and Harris narrowed to a mere 1.5% on July 30, with scores standing at 47.6% to 46.1% in favor of Trump.
An additional trigger for the downturn was the U.S. government's transaction involving approximately 29,800 BTC, valued at around $2 billion on July 29. This development came shortly after Donald Trump declared that he would not auction off any of the nation's Bitcoin holdings if re-elected.
In a recent update on X dated July 30, crypto analyst "Inmortal" expressed that the recent price dip may not necessarily be a negative event.
The more extensive the consolidation phase, the larger the subsequent expansion.
The overall market capitalization has seen a reduction of about 4.4%, dropping to $2.48 trillion at the moment. Yet, it has remained relatively stable, showing negligible movement over the past five months.
Ethereum experienced a drop from just under $3,400 to approximately $3,260, before it bounced back to cross the $3,300 mark during the early trading hours in Asia on Tuesday.
Other altcoins have, as usual, faced harsher impacts, with Solana (SOL), Cardano (ADA), Avalanche (AVAX), and Near Protocol (NEAR) bearing more significant losses.
