Bitcoin (BTC) surged to an all-time high of just over $75,000 as early election results left many hopeful following former President Donald Trump. When Trump took the lead in a number of key states, traders saw a potential win as positive for the crypto market. Demand rose most notably in the last two hours, driving Bitcoin up 7.5% in 24 hours.
That jump coincided with Trump’s timeline increasing on betting platforms like Polymarket, where he now has an 85% chance of winning. Many investors see Trump as a pro-crypto candidate compared to Democratic contender Kamala Harris, who isn’t quite as openly supportive of digital assets. That meant keen interest among buyers of the crypto in Bitcoin, with a positive sentiment around Trump’s potential victory.
More Bitcoin Trading Activity and Liquidations Boost Bitcoin
Part of Bitcoin’s run-up is due to the liquidation of bearish bets worth $94 million, Coinglass data shows. It also further added to an upward movement because investors who wanted to hedge against a possible bull run were joining the liquidation of short positions. The asset’s momentum was also helped by the premium on Coinbase, one of the US-based exchanges with a major profile.
Renewed domestic interest is reflected in the premium on Coinbase and often affects Bitcoin’s global price trajectory. The increase seen in this price points to an intersection of Trump optimism and strategic short covering on a Bitcoin market activity scale. The premium indicates that Bitcoin trades are robust in the U.S., with demand spiking.
DOGE Soars as Elon Musk’s Support Drives Gains
Dogecoin markets have also been on fire, with the coin rising nearly 20% since Tuesday, adding to a 30-day streak of gains that runs at nearly 65%. Short liquidations on futures for Dogecoin hit a record $30 million during the past day, signalling some change among traders covering their losing positions. Dogecoin’s futures have attracted open interest of Dogecoin to 8.3 billion tokens from 7 billion on Monday.
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Increased interest from retail traders due to rising demand came after technology entrepreneur Elon Musk recommended that the country create a Department of Government Efficiency, or ‘D.O.G.E.’. His endorsement has spurred a rise in Dogecoin. Dogecoin’s support remains a major asset among Bitcoin in the crypto space.
Renewed Interest in Dog-Themed Tokens
Other dog-themed tokens, such as Shiba Inu (SHIB), Floki (FLOKI), and Bonk (BONK), have all gained over 10% success following Dogecoin’s accomplishment. Average gains across dog-themed tokens increased by 16%, far surpassing the 7.2% rise of the overall market. There is also wider interest in these tokens during the already heady time of the U.S. election as cryptocurrencies gain popularity.
The market’s meme-driven momentum has benefited a parody D.O.G.E. token on Ethereum, which has seen 77% growth in the past day. This parody token, which first attracted attention last month, has accrued 500% since then, meanwhile highlighting the staying power of meme tokens. Since they offer alternative crypto investment opportunities, investors tend to increasingly turn to these assets.
Election Results Drive Market Sentiment
Crypto investors were buoyant following early voting results, which showed Trump winning states like Kentucky, Florida, and West Virginia. The Associated Press put Trump on top of the electoral map with 198 votes to Harris’s 99. Market sentiment has remained bullish as investors bet that Trump will impose a favourable policy going forward.
Crypto sentiment continues to react in real-time to election developments as the market awaits Trump’s impact on them. However, the current crypto rally is a good sign that suggests traders are eager to bet on a pro-crypto administration to create favourable regulatory conditions. The results of the ongoing election will likely continue to add to market sentiment.
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