Bitcoin has hit a new all-time high, surpassing $71,000 in Asian trading hours with a 5% increase over 24 hours. This surge in price has led to significant trading volume and the liquidation of over $143 million in short positions. The rally was partly fueled by whale activity on Binance and substantial inflows into Bitcoin ETFs, which saw a net increase of 47,000 BTC in the last two weeks.
The surge in Bitcoin’s price is being influenced by the upcoming U.S. elections, with traders betting on bullish market conditions regardless of the election outcome. The market seems to be pricing in increasing certainty of a Trump victory, leading to the liquidation of shorts against the $70,000 level. This has contributed to a spike in prices as traders closed their losing bets.
In addition to the surge in Bitcoin’s price, other major cryptocurrencies like dogecoin (DOGE), shiba inu (SHIB), Ether (ETH), Cardano’s ADA, Solana’s SOL, and BNB Chain’s BNB have also seen significant gains. The CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market capitalization, rose by 3.3%.
Traders are expecting Bitcoin to set fresh highs regardless of the outcome of the U.S. presidential election. The industry has long perceived a Republican victory as a bullish catalyst for the market due to Trump’s pro-crypto stance. However, Democrat Kamala Harris has also indicated that she would introduce regulations to protect certain groups in the industry.
Despite the uncertainty surrounding the election, crypto options traders are increasingly betting that Bitcoin will reach new highs by the end of November. Options expiring on November 8 have the highest open interest at the $75,000 strike price, indicating a key focus area for the market during that period.
Overall, the surge in Bitcoin’s price and the broader market move ahead of the U.S. elections reflect the optimism among traders and investors. The market is poised for further growth, driven by both macroeconomic factors and specific developments within the cryptocurrency industry. As the industry continues to evolve, it will be interesting to see how these factors shape the future of Bitcoin and other major cryptocurrencies.