Bitcoin rises above $67,000 as traders go ‘in search of liquidity’ after surgery

Bitcoin prices hit a 10-day low as traders try to gauge short-term direction.

The asset fell slightly to $65,160 on Thursday and is trading relatively flat around $67,500, according to CoinGecko data.

It comes as Bitcoin's price breached $69,000 on Sunday—the asset's all-time high, set on March 14, just above $73,700.

That could be short-term, with some experts posting a downgrade for asset activity this week.

Ryan McMillin, chief investment officer at crypto fund manager Merck Tri Capital, said: “We don't see this as linked to the chances of the US election, but it's a natural hunt for liquidity after the big swing last week.” Decrypt.

Liquidity hunting refers to the process by which the market “pulls out” especially long exposures or traders who are betting on rising prices.

Traders use long-term inflation to force them to buy or sell, which puts downward pressure on asset prices. This is considered a healthy correction, clearing speculative gains before the market continues its upward trend, McMillin said.

“We expect to retest the $70,000 resistance soon, but we will have to wait until the US election comes up for election.”

The U.S. presidential election on Nov. 5 could be critical for the industry, with participants expecting former President Donald Trump or Vice President Kamala Harris to introduce favorable regulations that would provide clear guidance for businesses operating in the country.

Already, Bitcoin's resilience is showing up ahead of the day, experts told Decrypt.

Although the election remains tightly contested, according to the FiveThirty-Eight poll, Trump is the winner in 2016. A little furtherBitcoin price is expected to fluctuate between $63,000 and $68,000 in the last days.

That's according to Pratik Kala, portfolio manager and head of research at digital asset fund manager Apollo Crypto.

“A critical break above $71,000 would make the market more likely to beat Trump,” Kala said. Decrypt.

It's a view shared by others, including Singapore-based digital assets trading firm QCP Capital, who wrote in a Note Bitcoin remains “well supported” on Wednesday.

“Given Trump's more crypto-friendly stance, it's no surprise that Bitcoin is trading higher,” he said.

The organization pointed to the convergence of election and non-farm payroll data scheduled for release on November 1, which is expected to show a slight increase in employment figures.

“As the uncertainty surrounding the labor market continues, all eyes are on the NFP release next Friday,” QCP wrote. “As the last NFP report before the next Fed meeting, it will play an important role in shaping expectations for the Fed's next interest rate move.”