Bitcoin's price experienced an 'upside down V' pattern during the Tuesday morning session, climbing to a near three-month high of $67,800 before swiftly dropping back to around the $65,000 mark.

At the time of reporting, Bitcoin was trading at $65,500, showing a 0.6% decrease over the past 24 hours and 3.3% below its earlier peak within the same session. Meanwhile, the broader CoinDesk 20 Index declined by 1.3% over the last 24 hours, with Solana (SOL) and Cardano (ADA) performing worse than Bitcoin.

Despite the fluctuating market conditions, Bitcoin has seen an 8% increase over the past week, with continued support from Republican presidential candidate Donald Trump potentially influencing this surge, according to Standard Chartered analyst Geoff Kendrick. Kendrick noted that Trump now has a 56% chance of securing victory in the upcoming November elections, marking his highest probability since Joe Biden exited the race as the Democratic candidate.

Kendrick also highlighted the increasing likelihood of a Republican sweep in Congress; his analysis suggests a 70% chance that if Trump wins, he will govern alongside a Republican-led House and Senate.

The volatility earlier today resulted in over $127 million in both short and long leveraged positions being liquidated over a four-hour span. Such liquidations occur when traders lack the necessary funds to maintain leveraged trades, leading to forced closures of positions and amplifying price swings.

Some traders at QCP Capital suggested that the rapid price movements were influenced by election events, particularly Trump's lead in the prediction markets, and the recent commitment from Vice President Kamala Harris to establish a crypto regulatory framework that could favor the cryptocurrency sector.

In closing, QCP explained that recent disappointing news from China regarding stimulus measures may have driven some investors to redirect their capital back into Bitcoin, breaking away from Chinese equities. This shift follows earlier predictions made by QCP.