Bitcoin Rockets to $76K Post Election
Bitcoin Hits All-Time High of $76,000 as Bullish Post-Election Optimism Hits the U.S. Crypto Market Sparking $256 Million in Liquidations Following the 2024 U.S. presidential election in which Donald Trump was re-elected, a decisive market movement took place, spurring optimism among investors and increasing volatility in crypto markets.
Significant Liquidations in Bitcoin Price Gains
The crypto market was hit by turbulent liquidations on Thursday because the tremendous growth of Bitcoin took traders by surprise. The total amount of liquidations since Wednesday was nearly $1 billion, with almost half occurring on Binance alone alongside high rates on OKX and Bybit.
The massive surge of Bitcoin above $75,000 caused them to lose $53 million in the course of liquidations on perpetual contracts. As the market moved up quicker than expected, traders who were overly bullish with their shorts had $30 million in forced closures, while longs who played it safe and leveraged more modestly also lost about $23 million.
As the price of Ethereum approached $3,000, heavy liquidations were also imposed on ETH. Ethereum liquidations were also at $65 million, with short positions accounting for $48 million and longs accounting for $18 million, according to CoinGlass. Many short-sellers ended up losing quite a lot of money on this unexpected surge in the price of Ethereum.
Crypto Markets and the Trump Effect
Analysts say most of the strength in the market is due to President Trump being pro-crypto. Trump said in his campaign that he plans to reform the regulatory landscape, specifically stating that he will fire SEC Chairman Gary Gensler and ease what he referred to as “oppression” of crypto. Goal of his administration: to integrate cryptocurrency into the American financial fucking system and establish a national Bitcoin reserve backed by Bitcoins seized by the government. Such announcements created hype among the investors, triggering hoity-toity trading.
Traders priced in prospects for a regulatory environment good for the sector when Trump won clear victory on Nov. 6. This phenomenon resulted in fast-moving price spikes that took countless leveraged traders by surprise and led to a cascade of forced liquidations.
While heavy liquidations affected altcoins
This rally did not just include Bitcoin and Ethereum; many other altcoins saw mass liquidations as well. Dogecoin logged a $10 million liquidation loss, while NEIRO—an homage to the Doge coin with $7 million in liquidations, for example. Most of these liquidations happened on Binance ($97 million), OKX ($46 million), and Bybit ($45 million).
The move liquidated more than 77,000 crypto traders, including a Bitmex trader who suffered a loss of $22 million in a single ETH/USDT position.
Initially all quiet, but then brace yourself for more after the release of quarterly figures.
Even in the face of these losses, traders have remained active, with about $7 million in liquidations occurring across the market within just the past 60 minutes. Just four hours prior, Binance, OKX, and Bybit liquidated $18 million as the volatility continued to force traders to hop from one price opportunity to another.
Despite much uncertainty, many traders are still hopeful on the direction of digital assets as new policies on extendingThe post Trump Promises to Reshape US Reg Tech Again: Traders Hopeful appeared first on Blocktalk. Despite this, the spike in victims of forced liquidation shows just how dangerous captive positions can be during a busy market.
Given the ever-changing market conditions, even during the recent change in administration and underlying regulations, the chance for extreme volatility continues to become evident, which is difficult for both new traders and veterans to trade in this new climate.
