Bitcoin has broken the resistance in an early-week rally to cross the $71,000 mark during an upward move that saw the largest digital asset by market capitalization add volume incrementally. This remarkable Bitcoin surge is happening just shy of a week before the American Presidential election, a known time for crypto prices surging and getting worked over. Over the past 24 hours, Bitcoin rallied by 5%, with a combination of whale movements, exchange-traded fund (ETF) inflows and liquidated short positions driving market dynamics, according to data provided by news sources.
Based on available data, Bitcoin witnessed a doubling in its trading volume over the past 24 hours, reaching $48 billion and pushing through major resistance at $70k. The surge resulted in the liquidation of over $143 million worth of short positions, as reported by sources. $73 million in BTC shorts were liquidated, with $39 million worth of Ethereum (ETH) shorts also being taken out. This led to increasing the cost of buying back, and Bitcoin soared with its momentum being sustained as election day nears.
Market Bets and Whale Activity Drive Bitcoin Surge
Many analysts have been led to speculate that the run up in Bitcoin has been primarily propelled by a rise in whale activity on crypto exchanges, mainly Binance. An interesting crypto data from a notable research firm indicates that the whales became net buyers with this past exchange activity in various Asian markets.
Bitcoin ETFs have also spurred demand for the asset, seeing 47k BTC flow into them in two weeks. This increase in inflows illustrates increasing interest for investing in cryptocurrency, especially as the U.S. election nears and with it a potentially pivotal period politically.
Darius Sit, co-founder of QCP Capital, speaking in a similar vein stated that the rally to $70k was brought about by the market anticipation for a Trump victory, leading to shorts being liquidated. Sit said in a brief message: “The market seems to be pricing in increasing certainty of a Trump victory,” supporting the mood that has pushed Bitcoin up most recently.
Broader Crypto Market Follows Bitcoin’s Lead
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There has been a ripple effect across the broader cryptocurrency market from Bitcoin’s rise to power. A more bullish approach was given by Dogecoin (DOGE) which put in 15% thanks to Trump’s continued popularity , with Shiba Inu taking on 8%. The other big cryptos rallied higher as well, with Ethereum (ETH), Cardano (ADA), Solana (SOL) and Binance Coin (BNB) all posting over 3% gains for an overall bullish flow in the wider crypto space.
Crypto options data suggests further BTC price strength, as the $75,000 strike has the maximum open interest for the November 8 expiry. This increased interest at high strike price ignites market bullish sentiment, with participants wagering on continual growth towards the tail-end of this year.
Pre-Election Day Bullishness
The November election is likely to continue to affect Bitcoin prices regardless of who wins. However, traders view a Republican victory as a more direct catalyst, given Trump’s history of being pro-crypto and his stated intentions to bolster America’s standing in digital coins. Analysts, however, expect that if Vice President Kamala Harris wins, the mercurial asset will still do well, and broader macroeconomic trends such as inflation worries and stimulus measures by China could help push up prices.
“Traders are increasingly looking at November as a turning point,” said one options analyst. “The market sentiment is primed for Bitcoin to reach new heights, whether driven by election outcomes or broader economic catalysts.”
Conclusion
The Bitcoin surge to over $71,000 in recent weeks is a product of market excitement blended with strategic moves in part by big hands and the U.S. election adding more anticipation around it. As institutions look to Bitcoin ETFs leaving the bear phase and open interest in high-price options, investors are bracing for a potentially record-breaking move by the end of the year. Bitcoin’s recent rally as Election Day approaches reflects the growing interest in digital assets as a whole; investors and traders are keeping watchful eyes on political and economic events to see what will happen in the coming weeks.
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