Bitcoin, Ethereum, Dogecoin Fall As Trump's Presidency Odds Dip On Prediction Market: Analyst Highlights 'Long The Dip Time'

The cryptocurrency market slid further on Thursday as the odds of a win for pro-cryptocurrency presidential candidate Donald Trump dropped on prediction markets.

What Happened: Bitcoin crashed from $65,000 to $63,500 during morning trading hours, dashing investors' hopes of a rally to a fresh all-time high anytime soon.

The likelihood of Donald Trump winning the presidential race has fallen to 62%, down from 72% at the start of the week, on cryptocurrency-based prediction market, Polymarket. The presidential hopeful has championed cryptocurrency's cause in his campaigns, and analysts have predicted huge gains for Bitcoin amid the formation of a pro-crypto presidential ticket. 

Ethereum meandered in the $3,400 region, while Dogecoin saw heavy sell-offs during the day.

More than $145 million locked in derivatives contracts was liquidated in the last 24 hours, with long liquidations accounting for $110 million.

Bitcoin's Open Interest dropped 0.33% in the last 24 hours, while downside bets for the asset increased vis-à-vis bullish bets. 

According to Coinglass, 48% of the market was bearish on Bitcoin at the time of writing, while 35% were optimistic about further gains. About 17% of the market was neutral.

Top Gainers (24-Hours)

The global cryptocurrency market stands at $2.32 trillion, down 1.65% in the last 24 hours.

Stocks traded in the red on Thursday. The Dow Jones Industrial Average slipped 533.06 points, or 1.29%, to end at 40,665.02. The S&P 500 fell 0.78% to close at 5,544.59, while the tech-heavy Nasdaq Composite dropped 0.70% to finish at 17,996.92. 

Equity indices, with the exception of the Dow, have fallen this week. The Russell 2000 has jumped 2.3% over the last week, indicating demand for small-cap companies.

According to CME's FedWatch tool, traders anticipate a 91.5% chance of a rate cut by the Federal Reserve in September. 

See More: Best Cryptocurrency Scanners

Analyst Notes: Despite the negative price action, well-known cryptocurrency trader and analyst Ali Martinez flagged a buy signal for Bitcoin on the TD Sequential indicator. This indicated a potential rebound in the days to come. 

Widely-followed analyst Byzantine General stated that both Bitcoin and Ethereum look good. 

Though the analyst predicted a pullback to $61,000 and $3,200 for the two respectively, they argued that traders should long this dip.

Photo by Avi Rozen on Shutterstock

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