Bitcoin (BTC) and Dogecoin (DOGE), two of the market’s leading assets, spearheaded the rally. With the 2024 U.S. presidential election heating up, Trump has gained a commanding lead in key swing states, edging closer to securing the 270 electoral votes needed for victory. At the time of this report, Trump had 246 electoral votes, while Kamala Harris trailed with 189 votes. This shift in momentum led to a major surge in the global crypto market.
During the early European trading session on Wednesday, November 6, the total cryptocurrency market capitalization jumped by over 6%, reaching approximately $2.57 trillion. Bitcoin, the market leader, saw a nearly 9% surge, trading at $74,712. The rally was largely attributed to the growing optimism around Trump’s candidacy and his favorable stance towards cryptocurrency, which has attracted the attention of crypto investors.
Dogecoin Leads The Meme Coin Market
Among the altcoins, it was Dogecoin (DOGE) that stole the show. The meme coin, supported by tech billionaire Elon Musk, soared more than 25% in the past 24 hours, reaching a price of around $0.204. This surge highlights Dogecoin’s continued popularity and its ability to rally on the back of broader market movements, particularly those tied to Musk’s endorsement and the pro-crypto political climate.
Crypto Liquidations and Whale Trading Activity
The recent surge in crypto prices also triggered a wave of liquidations, particularly among short-sellers who were caught off guard by the market’s sudden rally. According to on-chain data from Lookonchain, over $483 million was liquidated from the crypto market in the past 24 hours, with more than $358 million of that involving short traders. These traders, who initially bet against Bitcoin and other cryptocurrencies, were forced to go bullish in an attempt to recoup their losses.
In one notable instance, a whale trader attempting to short Bitcoin as the asset reached a new all-time high (ATH) faced a forced liquidation of nearly $75 million. On the other hand, a smart whale made a savvy move, depositing 195.4 Wrapped Bitcoin (WBTC) worth $14.5 million on Binance, securing a $4.48 million profit as Bitcoin surged. Despite the volatility surrounding the U.S. election, large institutional investors have been cautious. U.S. spot Bitcoin ETFs registered a net cash outflow of $116 million on Tuesday, marking the third consecutive day of losses.
Market Sentiment and Election Impact
The cryptocurrency market has shown resilience amid the political uncertainty of the U.S. elections, with a strong correlation between Trump’s rising popularity and the bullish movement in assets like Bitcoin and Dogecoin. However, the market’s volatility, coupled with whale activity and liquidations, serves as a reminder of the risks associated with cryptocurrency trading. As the election season unfolds, all eyes will remain on the candidates’ stances on crypto and their potential impact on the market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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