SUMMARY
- Bitcoin surged past $71,000 during Asian trading hours, rising 5% in 24 hours and triggering over $143 million in short liquidations.
- Whale activity on Binance, inflows into Bitcoin ETFs, and market optimism surrounding the upcoming U.S. elections fueled the rally.
Bitcoin surged above $71,000 amid Asian trading hours on Tuesday, marking a 5% rise over the past 24 hours, accompanied by $48 billion in trading volume—double the previous day’s figures. The rally broke the critical $70,000 resistance level, activating the liquidation of over $143 million in short positions within 12 hours. Bitcoin shorts accounted for $73 million of these liquidations, whereas Ethereum shorts added $39 million, concurring to CoinGlass information. The sharp move upwards is mostly ascribed to the constrained closure of these losing positions.
Whale action on Binance has moreover been a key figure in Bitcoin’s rally. CryptoQuant investigators noted that huge investors, commonly alluded to as “whales,” were net buyers amid Asian trading hours, giving extra market momentum. Bitcoin exchange-traded funds (ETFs) have played a part in supporting demand, with net inflows totaling 47,000 BTC over the past two weeks, encouraging fortifying the bullish sentiment.
The upcoming U.S. elections on November 5 have contributed to the optimistic market viewpoint, with traders seeing them as a bullish catalyst. A Trump victory is seen as especially favorable for the crypto market due to his past statements on making the U.S. a pioneer in Bitcoin adoption. On the other hand, Kamala Harris, despite the fact that less vocal about Bitcoin, has signaled her intention to present regulations aimed at protecting vulnerable groups. Notwithstanding the election’s result, traders anticipate Bitcoin to keep up its bullish direction due to broader macroeconomic variables supporting the asset.
In addition to Bitcoin’s rally, altcoins also saw critical gains. Dogecoin (DOGE) rose by 15%, buoyed by Trump’s developing popularity, whereas Shiba Inu (SHIB) gained 8%. Ether (ETH) climbed 4.9%, while Cardano (ADA), Solana (SOL), and Binance Coin (BNB) each progressed by more than 3%. These developments reflect developing certainty in the crypto market ahead of the elections.
Crypto options traders are putting bets on Bitcoin hitting new highs by the end of November. Options set to expire on November 8 appear the most noteworthy open interest at the $75,000 strike price, demonstrating a significant price target for that period. Market analysts recommend that supported institutional inflows, combined with macroeconomic variables and election-driven speculation, could thrust Bitcoin to higher levels in the coming weeks. Traders stay optimistic that Bitcoin’s current upward force will extend into 2025, driven by developing demand and favorable conditions.