Key Points
- Bitcoin price hits a new all-time high above $75.3K following pro-crypto Donald Trump’s victory in the 2024 US election.
- Political certainty in the US triggers a significant surge in the cryptocurrency market, led by Bitcoin and Dogecoin.
The digital currency market, spearheaded by Bitcoin and Dogecoin, has witnessed a considerable upsurge in the last 24 hours. This surge is attributed to political stability in the United States, following the victory of pro-cryptocurrency presidential candidate Donald Trump.
The Republican Party’s control over the Senate and the House of Representatives has also contributed to this market trend. The leading cryptocurrency, Bitcoin, saw an increase of over 8 percent in the last 24 hours, reaching a new all-time high of approximately $75,358.
Market Reactions and Predictions
However, the price later dropped to around $74,461 during the early London session on Wednesday, November 6. The total crypto market cap also saw an increase of over 6 percent, hovering around $2.58 trillion at the time of the report.
This market surge resulted in more than $531 million being wiped out from the crypto leveraged market. This mainly affected short traders on Bitcoin and Dogecoin. Data from Lookonchain reveals that a single whale investor lost over $74 million trying to short Bitcoin as it hit an all-time high.
In the near term, some Wall Street analysts have warned traders of potential downside risk as a sell-the-news scenario looms ahead. This caution comes despite the cryptocurrency market being on a macro bull run, fueled by institutional investors.
Whale Investors and Market Trends
Whale investors, led by the US spot Bitcoin ETFs, have been de-risking in recent times ahead of high-impact news. This includes the US elections and the upcoming revision of benchmark interest rates by the Federal Reserve and the Bank of England (BoE).
Recent market data shows a net cash outflow of over $116 million from the US spot BTC ETFs on Tuesday. Even BlackRock’s IBIT registered a net cash outflow of over $44 million but still holds over $30 billion worth of Bitcoins.
Future Bitcoin Price Action
Following Trump’s victory, Bitcoin price has begun a new bullish trend, with experts setting higher targets for the coming months. While Bitcoin price might cool down in the short term as some investors take profits, the significant rise of FOMO traders will likely increase the impact of the ongoing short squeeze.
Crypto analyst Benjamin Cowen suggests that Bitcoin price is likely to continue beyond the new all-time high in the coming months. He believes Bitcoin price is on track for a bullish fourth quarter, similar to previous bull markets.
However, Cowen warns that Bitcoin dominance could begin a reversal before the end of this year, potentially triggering the altseason.
