In a dramatic turn of events, the cryptocurrency market experienced a notable surge following the increased electoral prospects of pro-crypto presidential candidate Donald Trump. As of this morning, the market saw a rally led by major cryptocurrencies like Bitcoin (BTC) and Dogecoin (DOGE). With the presidential race requiring 270 electoral votes for victory, Trump commanded a strong position with 246 electoral votes compared to Kamala Harris’s 189, particularly influencing outcomes in key swing states.
Cryptocurrency Market Capitalization Reaches New Heights
As a consequence of these electoral developments, the total cryptocurrency market capitalization witnessed a remarkable increase of over 6%, reaching approximately $2.57 trillion on Wednesday, November 6. This uptick occurred during the early European trading session. Bitcoin, in particular, saw a significant price jump of nearly 9%, trading at around $74,712 at the time of this report.
Dogecoin Leads the Meme Coin Rally
Dogecoin, supported by tech mogul Elon Musk, spearheaded the altcoin and meme coin sector’s gains. The price of DOGE skyrocketed by more than 25% in the past 24 hours, reaching approximately $0.204 at the time of writing. This surge underscores the growing interest and investment in meme coins, driven by influential backers and favorable market conditions.
Heavy Crypto Liquidations Led by Whale Traders
The rising market activity spurred a wave of FOMO (Fear of Missing Out) trading, contributing to over $483 million in liquidations from the crypto market over the last 24 hours. Notably, short traders accounted for more than $358 million of these liquidations as they shifted to a bullish stance in an effort to recover their losses.
On-chain data from Lookonchain highlighted a whale trader’s attempt to short Bitcoin during its surge to a new all-time high (ATH), resulting in a forced liquidation totaling nearly $75 million. Meanwhile, another savvy whale strategically deposited 195.4 WBTC, valued at approximately $14.5 million, into the Binance exchange within the last two hours, securing a profit of $4.48 million as Bitcoin reached its ATH today.
Whale Investors Remain Cautious Amid Election Volatility
Despite the market’s bullish momentum, the anticipated volatility surrounding the U.S. elections has deterred many whale investors. On Tuesday, U.S. spot BTC Exchange-Traded Funds (ETFs) recorded a net cash outflow of $116 million, marking the third consecutive day of outflows. This trend suggests a cautious approach by significant investors amidst the uncertainty of the electoral outcomes.
