Bitcoin has surged to unprecedented levels, breaking above $75,000, as political developments and Donald Trump’s early election success drive optimism in the cryptocurrency market. The former president’s favourable stance towards digital assets is seen as boosting market sentiment.
Market Dynamics:
- Rapid Price Increase: According to data provided by CoinGecko, the global crypto market capitalization saw a 5% rise over the past 24 hours, reaching $2.56 trillion. The daily trading volume almost doubled and is currently hovering at $236 billion. Bitcoin’s value increased by 7.5% within a single day, particularly during the Asian morning trading hours, with significant activity on exchanges like Binance and Coinbase.
- Influence of Election Results: The positive early voting results for Trump, considered more crypto-friendly than opponent Kamala Harris, have bolstered investor confidence, leading to a bullish outlook in betting markets with an 85% predicted chance for a Trump victory.
- Short Squeeze: A substantial liquidation of short positions against Bitcoin, amounting to $94 million, has further propelled the price upward, indicating strong market demand and optimism.
Wider Crypto Market Trends:
- Altcoins Rally: Other cryptocurrencies, including DOGE, have also experienced significant gains. Market interest in DOGE futures spiked, with open interest reaching 8.3 billion tokens. Ethereum (ETH) also gained 6.3% and is trading at $2,590 at the time of writing. However, ETH is still down by 47% from its ATH of $4,878 in November 2021.
- At this point, most of the leading 100 cryptocurrencies are witnessing upward momentum as the Trump victory has been acting as a major bullish catalyst for the sector.
- Celebrity Endorsement: Elon Musk’s continued support for DOGE and related government initiatives has fueled further optimism, driving rallies in other dog-themed tokens like Shiba Inu and Bonk, which have seen around 10% gains.
