Key Points
- Bitcoin (BTC) hits new all-time highs following Donald Trump’s win in the U.S. presidential elections.
- The BTC market cap surpasses $1.6 trillion, triggering a broader market rally.
Bitcoin (BTC) has been achieving record highs over the past week, with the cryptocurrency market demonstrating strong bullish sentiment following Donald Trump’s victory in the U.S. presidential elections.
In the past week, Bitcoin (BTC) has seen an increase of 18% and a 3% rise in the last 24 hours. The leading cryptocurrency reached a new all-time high of $81,858 earlier today before slightly correcting to a current trading price of $81,000.
Bitcoin’s Market Dominance
The steady gains have led to the BTC market cap exceeding the $1.6 trillion mark. Furthermore, its daily trading volume has also doubled, hitting $92 billion. At present, Bitcoin’s market dominance stands at 55.4%.
The digital currency has now become the ninth-largest asset, surpassing Meta’s $1.48 trillion market value.
This rally in Bitcoin has sparked bullish sentiment among digital asset investors, pushing the broader market closer to the 2021 highs. Data provided by CoinGecko reveals that the global crypto market cap has risen by 3% over the last day and is currently above the $2.9 trillion mark, a level not seen since mid-November 2021.
Reason Behind Bitcoin’s Rise
The rally in Bitcoin and the wider market began after Trump surpassed Vice President Kamala Harris in the U.S. presidential elections, leading to him being dubbed the “first pro-crypto U.S. president.”
This victory acted as a significant catalyst for the crypto market, triggering a fear of missing out (FOMO) among digital currency investors.
With Bitcoin surpassing its previous all-time high of $73,000 in March, short liquidations began to rise. Data from Coinglass shows that total crypto liquidations reached $630 billion in the past 24 hours, with Bitcoin accounting for $121 million of these liquidations.
Historically, short liquidations have initiated upward momentum, leading investors to typically expect high volatility. The increased trading volume also contributes to this market-wide volatility, with prices rising along with the election trend.
Data from IntoTheBlock indicates that whales accumulated almost 32,000 BTC on Nov. 10. The chart shows that large holder activity has been moving in the same direction as the BTC price since Nov. 6, the election day. This sudden surge in Bitcoin’s whale accumulation also suggests a fear of missing out (FOMO) among market participants.
