Bitcoin Drops After The Trump-Harris Debate!

The crypto market, volatile by nature, has once again shown its fragility following the Trump-Harris debate and the upcoming release of the Consumer Price Index (CPI). Bitcoin, which has long been seen as an asset disconnected from traditional political and economic uncertainties, dropped by 2.2% amid growing uncertainty. The event clearly illustrates how crypto can be influenced by unexpected external factors.

A lackluster debate, consequences for Bitcoin

The Trump-Harris debate, anticipated by many to provide insight into future policies, left cryptocurrency investors wanting more.

Indeed, neither Donald Trump nor Kamala Harris addressed the issue of digital assets, a crucial topic for Bitcoin supporters.

In a market hungry for positive signals, the prolonged silence of politicians on cryptocurrency regulation suggested a lack of commitment, if not a palpable indifference.

This led to an almost immediate reaction: in just one hour, the price of Bitcoin plunged nearly $1,000, reaching local lows of $56,099.

Far from being a simple technical correction, this drop reflects a deeper concern among traders, who had hoped for hints of a potential pro-crypto policy.

As explained by the trading company QCP Capital, the lack of comments on cryptocurrencies increased uncertainty, conducive to a “risk aversion move.”

The approaching CPI, an aggravating factor

At the same time, anticipation of the release of the Consumer Price Index (CPI) contributed to the downward pressure on Bitcoin.

This key economic indicator, which measures inflation in the United States, is crucial for traditional markets, but it also plays a determining role in the evolution of BTC’s price.

In this context, crypto investors, usually more inclined to ignore traditional economic indicators, paid attention this time. The reason? Fears that inflation might provoke an aggressive response from central banks, making risky assets less attractive.

Forecasts around the CPI suggested a decline, from 2.9% to 2.55%, but some experts, such as those from QCP, believed the chances of an upward surprise were high.

If the CPI figures exceed expectations, this could reinforce inflationary pressures and trigger a massive selloff of risky assets, including Bitcoin.

Despite these fears, some experts remained optimistic. They anticipated a limited impact from the CPI. Indeed, attention was already turning to unemployment data, deemed more crucial for market evolution.

A tough technical resistance to overcome

While political debate and the CPI were putting pressure on Bitcoin, technical indicators were also not in the cryptocurrency’s favor.

On the 4-hour chart, traders identified significant resistance. BTC/USD is hitting two essential trend lines. The simple moving average (SMA) and the exponential moving average (EMA) over 200 periods reinforce this barrier.

These levels, respectively located at $59,200 and $58,840, acted as a ceiling that Bitcoin was unable to break through.

This technical setup indicates some weakness in the current market momentum. As noted by trader Daan Crypto Trades, as long as BTC fails to surpass these moving averages, it will be difficult for the bulls to regain control of the market.

However, such resistance is not new, and many experts believe Bitcoin is following a classic correction pattern before a major macroeconomic event like the CPI. Thus, while Bitcoin has lost ground, the cryptocurrency remains in a strategic position, ready to rebound as soon as external signals allow.