Bitcoin hit an easy all-time high of $75,000 between Tuesday and Wednesday.
This happened as Trump’s odds of victory surged on PolyMarket and in early election results.
Crypto liquidations hit nearly half a billion dollars on the bearish side.
Investors generally expect heightened volatility and a possible Bitcoin rise to $100,000 as early as January 2025.
On 6 November, Bitcoin reclaimed a new all-time high that appeared to have been months in the making.
This happened just as the early U.S. election results indicated a lead for Donald Trump against Kamala Harris in the race.
Now that Donald Trump has emerged as the next president of the United States, only time will tell what comes next.
This major development has stirred major market reactions from several sectors, and traders are eager to capitalize on the rising prices.
Let's go over what's been up, and what might happen after—now that Donald John Trump is on his way to the white house.
This week, data from CoinMarketCap shows that Bitcoin touched the $75,000 price level for the first time.
This is higher than the $73,800 mark in March, after the spot Bitcoin ETFs were approved in the U.S.
Bitcoin’s $75,000 mark
This rally to a new high happened after Bitcoin crossed $70,000 in hours.
Investors, recognizing this pivotal movement, have begun pushing the cryptocurrency higher and higher.
Interestingly, this spike in Bitcoin from $70,000 to $75,000 happened just after early U.S. poll data showed Trump leading the electoral count.
Trump, who is seen as crypto-friendly compared to Kamala Harris, has this influence on crypto because investors expect the sector to thrive under his administration.
Throughout 2024, investors have had a positive outlook on Bitcoin’s performance, even without Trump winning the presidency.
Many traders believe that his policies would benefit the crypto industry, and speculation has been especially wild as the election results have begun to unfold.
Interestingly, Bitcoin also surged past $70,000 when Trump’s odds of victory crossed the 60% threshold on PolyMarket.
Bitcoin is now sitting steady on the $75,000 price level now that Trump has been announced as winner of the 5 November US election.
Bitcoin’s latest price surge has been especially harsh for BTC sellers.
Liquidation data from Coinglass
Data from Coinglass shows that crypto bears lost $498 million across the board between Tuesday and Wednesday.
As illustrated above, the Bitcoin bears lost a staggering $260 million from the total.
According to data from CoinGlass, the bearish liquidations hit a high of nearly $200 million within four hours after Bitcoin hit its new ATH.
Despite Bitcoin’s jump to new highs in a matter of hours, its upward trend is not guaranteed.
Analysts, in general, expect the cryptocurrency to enter a period of massive volatility, with M.N. Trading founder Michael van de Poppe predicting a rise in general altcoin prices from here on out.
In a recent tweet, analyst Ali Martinez also stated expectations of a $100,000 Bitcoin price.
Despite the predicted volatility, analysts still expect a price rally for the cryptocurrency to the upside.
The question now remains:
Just as many experts see Bitcoin continuing to soar, many believe that its price could hit $100,000 in early 2025.
One of these is Markus Thielen, the head of Research at 10x Research.
In a recent update, Thielen speculated that Bitcoin might hit this price level if the current market trend continues.
If a Trump victory doesn’t turn out as a “sell the news” event, Bitcoin is inclined to continue further upwards and hit this mark between the end of 2024 and the start of 2025.
The recent rally has also coincided with massive outflows from the spot Bitcoin ETF market.
The Bitcoin ETF inflows
This further corroborates the theory that investors are leaning more toward the spot market than the derivatives.
Most of these outflows occurred on 4 November, when leading ETFs saw a staggering $541.1 million in withdrawals.
Fidelity, ArkInvest, Bitwise and Grayscale had the biggest outflows, while BlackRock’s IBIT fund bucked the trend with $38 million in inflows.
5 November saw another $118 million in outflows, which indicates that the bearish trend is continuing.
It also indicates that institutional investors are taking preventive measures, especially considering the expected volatility.
Bitcoin is keeping itself standing above the $75,000 mark so far.
The price surge between $70,000 and $75,000 shows the major relationship between crypto and political events.
Traders so far, are showing optimism for further gains, especially if Trump’s policies support the industry.
While some analysts see an increase in volatility, others expect Bitcoin to easily hit new milestones as the days roll by.
As the election results continue to roll in, market watchers are on high alert.
The robust demand and increased interest from the institutional side make Bitcoin poised to surprise the world, even despite the signs of an incoming correction.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.