Bitcoin (BTC) fell below $69,000 on Sunday, triggering significant levels of market liquidation. Interestingly, analysts also noticed a correlation of this decline with a decline in the chances of winning the Republican Party’s candidate for US President Donald Trump before the general elections scheduled for November 5.

Bitcoin price drop triggers $232.6 million in liquidations

Over the past few days, Bitcoin has witnessed a significant price re-correction following a prolonged price rally in October, during which it gained 20%. The price of the most critical cryptocurrency initially fell on Friday from over $73,000, finding support around $69,000.

After a tiny period of sideways movement, BTC recorded another significant decline on Sunday, reaching a local low of $67,960. Amid this price decline, cryptocurrency analyst Ali Martinez noted that 104,787 trading positions were liquidated, resulting in a loss of $232.6 million.

Data provided by Martinez showed that long traders made up the majority of these numbers, with $198.6 million liquidated while only $34 million was closed in tiny positions. The development means more traders expected the cryptocurrency market leader to rebound after its initial price decline on Friday.

As of this writing, Bitcoin is back above $68,000, with little sign of another price move. If the current downtrend continues, the main cryptocurrency could fall as low as $55,000, in line with the swing movement that has continued over the past eight months.

Alternatively, Bitcoin could undergo a price rebound, returning to levels within its all-time high of $73,750, as bullish sentiment remains high amid increased ETF inflows, the rapidly approaching U.S. elections and an anticipated Fed rate cut of 25 basis points.

Does Trump’s potential loss pose a threat to Bitcoin?

So far, Sunday’s decline in Bitcoin’s price has found a correlation with a decline in the likelihood of US presidential candidate and cryptocurrency activist Donald Trump winning. According to data from PolymarketTrump’s chances of winning the November 5 presidential election fell by 4.3% after his opponent, Democratic candidate and US Vice President Kamala Harris, became the favorite to win in Pennsylvania.

Though pro-crypto Donald Trump remains the front-runner for the modern president with Harris’ 53.8% to 46.1%, Bitcoin’s recent price reactions have shown that the Republican’s potential loss could result in a significant price decline for the cryptocurrency market leader. Although historical price data indicates that such a downturn is likely to be fleeting as Bitcoin consistently enters an upward trajectory following the US election, regardless of the outcome.

At the time of writing, BTC is currently trading at $68,471, reflecting a price decline of 1.38% over the last 24 hours. Meanwhile, the daily trading volume of this asset dropped by 40.54% and is valued at $24.40 billion.