In the wake of GOP candidate Donald Trump’s victory in the U.S. presidential elections, Bitcoin has been setting new records, achieving all-time highs throughout the past week. This surge reflects a robust bullish mood across the cryptocurrency landscape. Over the last week, Bitcoin’s value soared by 18% and saw a further 3% increase in the last 24 hours alone. Earlier today, the premier digital currency hit a peak of 81,858 but has since adjusted to 81,000 after a slight pullback.
BTC price | Source: TradingView
The remarkable uptrend has propelled Bitcoin’s market capitalization beyond the 1.6 trillion threshold. Concurrently, its daily trading volume has seen a significant jump, doubling to 92 billion. Presently, Bitcoin’s dominance in the market stands at 55.4%.
Surpassing Meta’s market valuation of $1.48 trillion, Bitcoin, often referred to as digital gold, has now become the ninth largest asset globally.
This rally has not only uplifted Bitcoin but also instilled a bullish outlook among investors in digital assets, pushing the overall market towards the peak levels of 2021. CoinGecko’s data reveals a 3% increase in the global crypto market cap over the last day, now exceeding $2.9 trillion, a figure last observed in mid-November 2021.
Moreover, the total cryptocurrency trading volume has surged by 80%, indicating a heightened interest from investors and reaching a staggering $306 billion.
What’s behind Bitcoin’s meteoric rise?
The momentum for Bitcoin and the broader market rally began with Trump’s election victory over Vice President Kamala Harris, branding him the “first pro-crypto U.S. president.” This event sparked a widespread FOMO (fear of missing out) among cryptocurrency investors.
Breaking past its previous high of 73,000 in March, Bitcoin’s surge has led to a spike in short liquidations. Data from Coinglass highlights that the total crypto market liquidations in the last 24 hours hit 630 billion, with Bitcoin alone accounting for 121 million of that—comprising 38 million in longs and $83 million in shorts.
Such short liquidations often precede a bullish momentum, leading investors to brace for potential high volatility. The surge in trading volume further contributes to this volatility, especially as prices have escalated following the election results, hinting at a possible correction on the horizon.
BTC large holder net flow | Source: IntoTheBlock
Data from IntoTheBlock reveals that whales, or large Bitcoin holders, acquired almost 32,000 BTC on November 10, aligning closely with the price movements since the election on November 6. This significant whale activity suggests that FOMO is driving market participants, contributing to the current rally.
