Bitcoin Price Rises Above $71,000 Ahead of U.S. Elections

by

As an analyst with over two decades of experience in global financial markets, I have seen my fair share of market fluctuations and trends. The recent surge in Bitcoin price above $71,000 is reminiscent of some of the most exciting moments in the tech stock bubble of 1999-2000 or the housing market boom before the 2008 crisis. However, what sets this apart is the resilience and adaptability of Bitcoin and the broader cryptocurrency market.

On Tuesday morning, the price of Bitcoin climbed over $71,000, triggering a general upward trend in the crypto market. This sudden increase happened only days before the U.S. elections, with many traders anticipating that Bitcoin could experience further growth due to the upcoming event, irrespective of its outcome.

In the last day, Bitcoin surged by 5%, breaching the significant barrier at $70,000 and recording trading volumes of approximately $44.66 billion, which is almost twice as much as what was seen on Monday.

This surge caused over $176 million worth of Bitcoin short positions to be liquidated, which means many traders who had wagered against Bitcoin were compelled to end their unsuccessful trades. Specifically, losses incurred by Bitcoin short sellers amounted to approximately $88.89 million, while those betting against Ethereum (ETH) suffered a loss of around $39.73 million.

It’s been observed that a significant portion of purchasing activity is being driven by large investors, or ‘whales’, predominantly on Binance during Asian trading times. Moreover, Bitcoin Exchange-Traded Funds (ETFs) have contributed to this demand, with approximately 47,000 BTC flowing in over the last fortnight.

Various digital currencies experienced growth, with Dogecoin (DOGE) surging by 15% and Shiba Inu (SHIB) rising by 8%. Ethereum went up by 4.9%, while Cardano (ADA), Solana (SOL), and BNB Chain (BNB) each registered gains exceeding 3%.

With the November elections fast approaching, speculators anticipate that Bitcoin could reach unprecedented peaks, particularly since there’s heightened interest in the $75,000 call option expiry. Regardless of whether a Republican or Democrat emerges victorious, there is widespread optimism about Bitcoin’s long-term prospects.

Read More

2024-10-29 09:09