- Bitcoin surged nearly 9%, reaching around $74,712, as Trump gained an edge in the U.S. presidential election, boosting crypto markets.
- Dogecoin led altcoins with a 25% increase, driven by FOMO traders and ongoing support from Elon Musk, reaching $0.204 within 24 hours.
- Whale investors stayed cautious amid election volatility; U.S. spot Bitcoin ETFs recorded $116 million in net cash outflows on Tuesday
Bitcoin and Dogecoin prices saw a sharp increase on Wednesday as Donald Trump took a lead in the U.S. presidential election. With 267 electoral votes to Kamala Harris's 214, Trump’s edge in key swing states boosted investor confidence in cryptocurrencies, pushing the overall crypto market cap up by over 6% to approximately $2.57 trillion.
Notably, in the early hours of the European trading session, Bitcoin’s price surged nearly 9%, reaching around $74,712. As Trump’s chances of securing the necessary 270 electoral votes improved, investor enthusiasm for digital assets spiked, reflecting heightened interest in assets perceived as alternatives to traditional markets during times of political uncertainty.
Dogecoin Leads Altcoins with 25% Gain
In addition, while Bitcoin attracted considerable attention, Dogecoin, bolstered by ongoing support from tech billionaire Elon Musk, led the altcoin market with an impressive 25% gain. DOGE’s value climbed to around $0.204 within 24 hours, capturing the interest of both individual and institutional traders.
More so, the influx of “fear of missing out” (FOMO) traders contributed to a substantial increase in Dogecoin’s trading volume, demonstrating its appeal as a meme-based cryptocurrency with rising market potential.
Meanwhile, the ongoing short squeeze in the crypto market resulted in approximately $483 million in liquidations over the past day, with $358 million tied to short positions. Traders attempting to counter losses turned bullish, helping drive up prices across various digital assets. This activity added to the volatility, underscoring the challenges of navigating crypto markets during high-stakes events like the U.S. election.
Bitcoin Hits All-Time High Amid Election-Driven Volatility
Furthermore, as Bitcoin approached a new all-time high, some large-scale traders moved to capitalize on the price surge. A notable transaction involved a “smart whale” who deposited 195.4 Wrapped Bitcoin (WBTC) to Binance, securing a profit of $4.48 million as Bitcoin’s price peaked.
Meanwhile, on-chain data from Lookonchain reported that one whale attempted to short Bitcoin at its peak price, resulting in a forced liquidation worth approximately $75 million.
However, despite the volatility, whale investors generally displayed caution. U.S. spot Bitcoin ETFs saw a net cash outflow of $116 million on Tuesday, marking the third consecutive day of reduced inflows. This trend suggests that while short-term traders actively engaged with the market, larger investors remained wary of potential fluctuations tied to election uncertainties.
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