Monday morning marked the lowest Bitcoin plunge since February 2024. In the early hours of August 5th, Bitcoin fell by 16.53% to trade at $49,883. Live data from The Block also illustrated an Ether fall, the lowest since January of 2024, currently charting at $2,186 due to a 23.75% dip.
August 5th marked a massive crypto selloff, triggered by unstable macroeconomic factors and Vice President Kamala Harris increasing odds of winning the November elections against Republican candidate Donald Trump. Trump’s pro-crypto campaign is beginning to crumble amidst a strong Democratic comeback heralded by Democratic nominee Kamala Harris. According to The Block, the entire crypto market has increased by 18.2% in the last 24 hours.
Min Jung, an analyst of Presto Research, commented on the likely factors that cumulatively fractured the crypto market. “First, the payroll numbers released last Friday were significantly lower than expected, with only 114,000 jobs added. This has heightened recession fears, leading to a 2.43% drop in the Nasdaq and a 1.84% drop in the S&P 500.” The global stock market collapse was coupled with Harris’ growing numbers. Unlike Trump, Harris is yet to cement a definitive stance on the future of cryptocurrency in the US.
4) Kamala jumping in the polls vs Trump
This is bad for crypto https://t.co/VZ3E7AsWSB
Even if Democrats are less evil towards crypto, the entire equity and crypto market is favoring a Trump win
TRADE – Sell until this reverts pic.twitter.com/vFveWY1iRi
— Jeff Dorman (@jdorman81) August 4, 2024
Jeff Dorman, the chief investment officer of crypto asset management firm Arca, recently took to X to express the detrimental impact of a Democratic on the crypto industry in the US. Despite these fierce speculations, the Harris campaign recently appointed David Plouffe, a former member of the Binance Global Advisory Board and global strategic advisor for Alchemy Pay, as part of the team’s crypto outreach efforts.
Unlike crypto crashes in the past, analysts speculate the recent plunge to be “ether-led, instead of BTC-led.” According to Jung, “Jump Trading has been transferring ETH to a centralized exchange amid rumors that they may be forced to exit the crypto business due to a CFTC investigation.” Jump Crypto, the crypto wing of Jump Trading, appeared to shift “hundreds of millions of dollars worth of crypto assets, including ether and USDT,” over the weekend, alluding to Monday’s crypto crash. “Investors are looking for more clarity on the Jump Trading situation, election predictions, and whether there will be dip-buying at these levels,” Jung added.
