The entire crypto market surged over 6% in tandem with Bitcoin price as whale investors rushed to trade the election-induced volatility.
The cryptocurrency market, led by Bitcoin BTC $106 796 24h volatility: 3.0% Market cap: $2.13 T Vol. 24h: $73.02 B and Dogecoin DOGE $0.17 24h volatility: 8.9% Market cap: $25.35 B Vol. 24h: $3.22 B , experienced a significant surge in the past 24 hours fueled by political certainty in the United States. Pro-crypto presidential candidate Donald Trump received the popular vote, as the Republican Party took control of the Senate and the House of Representatives.
The flagship coin surged over 8 percent in the last 24 hours to reach a new all-time high of about $75,358, before retracing to around $74,461 on Wednesday, November 6, during the early London session. The total crypto market cap surged over 6 percent to hover about $2.58 trillion at the time of this report.
As a result, more than $531 million was rekt from the crypto leveraged market, mostly involving the short traders on Bitcoin and Dogecoin. According to on-chain data analysis by Lookonchain, a single whale investor lost over $74 million for attempting to short Bitcoin as it reached an ATH.
So crazy!
After $BTC hit a new all-time high, a whale shorting $BTC got liquidated for $74.98M!https://t.co/MT0EgNW8ib pic.twitter.com/HUcpwQLc0Z
— Lookonchain (@lookonchain) November 6, 2024
Bitcoin Whales React to High-Impact News
The cryptocurrency market has been on a macro bull run fueled by institutional investors despite the low rising momentum. In the near term, some Wall Street analysts, led by Bitcoin critic Peter Schiff, have cautioned traders of potential downside risk as a sell-the-news scenario looms ahead.
As Coinspeaker previously reported, whale investors, led by the US spot Bitcoin ETFs, have been de-risking in the recent past ahead of the high-impact news. In addition to the US elections, the Federal Reserve and the Bank of England (BoE) will be revising their respective benchmark interest rates tomorrow.
According to the latest market data, the US spot BTC ETFs registered a net cash outflow of over $116 million on Tuesday. Interestingly, even BlackRock’s IBIT registered a net cash outflow of over $44 million but still holds over $30 billion worth of Bitcoins.
What Next for BTC Price Action
Bitcoin price has begun a new bullish trend, with experts setting their target for the coming months higher following Trump’s victory. Although Bitcoin price could cool down in the short term as some investors take profits, the notable rise of FOMO traders will eventually increase the impact of the ongoing short squeeze.
#BTC still tracking general halving year Q4 seasonality pic.twitter.com/fll4Lfrbfs
— Benjamin Cowen (@intocryptoverse) November 6, 2024
As a result, Bitcoin price is likely to continue beyond the new all-time high in the coming months. According to a popular crypto analyst Benjamin Cowen, Bitcoin price is on track to a bullish fourth quarter akin to previous bull markets.
However, Cowen cautioned that Bitcoin dominance could begin the much-anticipated reversal before the end of this year, and potentially trigger the altseason.
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