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Bitcoin has surged to all-time highs above $75,000 amid rising political tensions and early election success for Donald Trump. Since the former president has led in early voting, the crypto markets are already optimistic, and in just one day, Bitcoin gained 7.5%. With many looking at a Trump victory as something that will work out better for the crypto market in general, most are very optimistic about these latest price gains. It’s also a liquidation of significant short positions against Bitcoin, which is driving this speed price. Not only in Bitcoin but other cryptocurrencies, like Dogecoin, are seeing gains.
Bitcoin’s Sudden Surge and Market Dynamics
Bitcoin’s price increased by 7.5% over the course of 24 hours, mainly during the Asian morning hours. It reflected more in major crypto exchanges like Binance and Coinbase. The positive results for Trump, who is regarded as a friendlier candidate to cryptocurrencies compared to his opponent, Kamala Harris, also fueled the surge. According to Polymarket, the betting markets now give Trump an 85% chance of winning the U.S. presidency, which contributes to the bullish sentiment for Bitcoin.
The market saw a tremendous surge in Bitcoin transactions and liquidity, which signalled increasing demand. The premium of Bitcoin on Coinbase was also reported to have surged as domestic interest rose, mainly from U.S. investors. Analysts also attribute part of the rapid price surge to the liquidation of short positions against Bitcoin. Coinglass data reports that there was a massive liquidation of $94 million in bearish bets, driving Bitcoin’s upward trend even further.
Trump’s Influence on the Crypto Market
Trump’s lead in the election race has, in turn, impacted the broader cryptocurrency market. In general, Trump’s win is considered positive for the crypto space, as he has been a traditional friend of digital assets. The Democratic vice-presidential candidate, Kamala Harris, is not seen as particularly friendly to cryptocurrencies, and that is what has built an expectation that a Trump win would mean a more friendly regulatory environment for crypto.
Recently, Trump’s association with cryptocurrencies has been boosted further when one of his followers initiated a new crypto project and later confirmed that he is launching a token. A tokenized project promoted by the group of followers of Trump made it clear that it is to go live, thus associating the brand of Trump with the world of cryptocurrency. This has increased people’s interest in crypto investment as the political landscape has changed.
DOGE and Other Cryptos Surge as Well
Open interest in DOGE futures has also gone up dramatically to 8.3 billion tokens, which again points to higher market appetite. Tech entrepreneur Elon Musk, who has been associated with vocal endorsements of DOGE in the past, further fueled this rally after endorsing a newly proposed government agency that would be branded D.O.G.E. A renewed optimism in DOGE has further been fueled by an effort to make the government a more efficient organization through an initiative called D.O.G.E.
Apart from DOGE, Shiba Inu (SHIB), Floki (FLOKI), and Bonk (BONK) are some of the other dog-themed tokens that follow the same trend and even more, depicting a sentiment of bullishness in meme-coin sectors. Thus, these have seen about 10% gains from the overall market and especially the CoinDesk 20 major cryptocurrencies.
Bitcoin cannot be explained by market forces alone but is closely connected to the political shifts associated with Trump’s lead in early voting. As election cycles continue, crypto fans are keenly watching how the political landscape and crypto market unfold, which would also seem to have room to grow.
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