In a significant turn of events, the cryptocurrency market experienced a sharp increase as the odds for pro-crypto presidential candidate Donald Trump surged earlier today. This development sent ripples across the crypto sphere, with Bitcoin (BTC) and Dogecoin (DOGE) leading the charge.
Impact of Presidential Elections on Cryptocurrency
As of this report, Trump had captured 246 electoral votes against Kamala Harris’s 189, needing 270 votes to secure the presidency. His lead in pivotal swing states contributed to this momentum. Consequently, the total cryptocurrency market cap soared over 6 percent, reaching approximately $2.57 trillion during the early European session on Wednesday, November 6.
Bitcoin and Dogecoin: Leaders of the Surge
The price of Bitcoin surged nearly 9 percent, trading around $74,712 at the time of writing. Meanwhile, Dogecoin, buoyed by tech billionaire Elon Musk’s support, led the altcoin and meme coin sectors with notable gains. DOGE price surged over 25 percent in the past 24 hours, trading at approximately $0.204.
Heavy Crypto Liquidations Led by Whale Traders
The rise in cryptocurrency prices also triggered significant liquidation events in the market. Fueled by FOMO (Fear of Missing Out) traders amidst an ongoing short squeeze, over $483 million was liquidated in the past 24 hours. Notably, more than $358 million involved short traders who have since switched to bullish positions in an attempt to recover their losses.
Whale Trader Movements and Market Dynamics
According to on-chain data analysis by Lookonchain, a whale trader attempted to short Bitcoin as it surged to a new all-time high (ATH), resulting in a forced liquidation of nearly $75 million. Simultaneously, a savvy whale deposited 195.4 WBTC, valued at around $14.5 million, to the Binance exchange in the last two hours, securing a profit of $4.48 million as Bitcoin hit a new ATH.
Volatility and Investor Sentiment Amid U.S. Elections
The anticipated crypto volatility during the U.S. elections has been a deterrent for many whale investors. On Tuesday, the US spot BTC ETFs experienced a net cash outflow of $116 million, marking the third consecutive day of decline. This highlights the cautious stance of significant investors amidst the ongoing electoral developments.
In conclusion, the pro-crypto sentiment surrounding Donald Trump’s presidential candidacy has significantly influenced the cryptocurrency market, with notable impacts on Bitcoin and Dogecoin prices. As the election progresses, investors and traders are closely monitoring these trends to navigate the volatile landscape effectively.
