Cryptocurrency markets saw significant declines on Thursday as traders began to pull back from recent gains, leading to a widespread downturn across the sector. After failing to breach its previous all-time high of $73,700, Bitcoin (BTC) fell below the $71,000 mark, marking a 2% decrease in just 24 hours.

The situation worsened for many altcoins, with Ethereum's ether (ETH) dropping a hefty 6%. Other notable losers included Aptos (APT) and Render (RNDR), each tumbling by 5%. The overall performance of the CoinDesk 20 Index was bleak, registering a decline of 2.8%. Strikingly, Bitcoin's dominance in the crypto market, which gauges the largest cryptocurrency's share of the total market capitalization, climbed to a three-year high of 60.2%, highlighting its ongoing prominence even amidst market volatility.

These price declines coincided with a significant drop in U.S. stock markets, where the Nasdaq and S&P 500 fell by 2.3% and 1.5%, respectively. Major tech companies, including Meta and Microsoft, are facing turbulence following disappointing earnings reports, further exacerbating the market's downturn.

Interestingly, MicroStrategy (MSTR), which recently disclosed a substantial $42 billion capital raise plan aimed at accumulating more Bitcoin, showcased resilience by only dipping 2.5%. This move underscores the company's continued confidence in Bitcoin's potential for growth.

Geoffrey Kendrick, the head of research for digital assets at Standard Chartered, pointed out that the looming U.S. elections next week could create a risk of position unwinding among traders. However, he believes that any dips would be temporary. Kendrick anticipates a resurgence in crypto prices post-election, regardless of the outcome, predicting that a Republican sweep could ignite a particularly bullish trend for digital assets.

With the bank setting an ambitious year-end Bitcoin price target of $125,000, the report also suggested that altcoins like Solana (SOL) could substantially benefit from a more favorable regulatory landscape moving forward.

As traders assess their positions and look ahead to the elections, the crypto world is bracing for potential shifts in momentum. Will Bitcoin bounce back? Only time will tell, but the excitement around its future remains palpable!