Recent Market Movements

Bitcoin (BTC) has seen a recovery, recently trading above $70,000 after hitting a low of $68,800. The cryptocurrency remains approximately 3% lower compared to the previous day. Notably, altcoins experienced steeper declines, with the CoinDesk 20 Index down over 3.5%. The market's downturn has been attributed to profit-taking following a strong rally earlier in the week and diminishing odds of Donald Trump's election victory, as noted by Quinn Thompson, founder of Lekker Capital.

Panic Selling by Short-Term Holders

Short-term Bitcoin holders have offloaded over $2.3 billion worth of BTC at a loss amid this price drop. This spike in selling reflects panic among investors who have owned Bitcoin for less than 155 days. This surge of selling, totaling 54,000 BTC, marks the highest daily exchange volume since late March.

Election Odds Impact

Current betting trends show that the likelihood of Kamala Harris winning the upcoming presidential election is rising, with her odds increasing from 33% to 39% just days prior to the election. The shift in expectations concerning both Trump and Harris could be influencing trading strategies.

Source: CryptoQuant

In conclusion, as the market stabilizes, traders are cautiously observing the forthcoming election and its potential market implications.