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Trump-Led Market Rally Wipes Out Crypto Bears Overnight

Trump-Led Market Rally Wipes Out Crypto Bears Overnight

DailyCoinDailyCoin2024/11/07 17:33
By:DailyCoin
  • Trump secured the presidential race.
  • Crypto markets rallied in response.
  • Short sellers were caught off guard.

Donald Trump reclaimed the US presidency for a second term, declaring victories in pivotal swing states like North Carolina, Pennsylvania, and Georgia. This has sparked a major rally in the crypto market, with investors eyeing the potential for a pro-crypto administration.

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In response, the total crypto market cap surged by $270 billion, delivering double-digit gains across most of the top 100 tokens. Meanwhile, short sellers have taken a hit, facing large-scale liquidations as bullish sentiment sweeps through the market.

Short Sellers Get Burned

With Trump winning a second presidential term, crypto markets surged in anticipation of a pro-crypto administration. The total crypto market cap hit a 15-week high of $2.48 trillion as of Wednesday morning (GMT) in response.

Trump-Led Market Rally Wipes Out Crypto Bears Overnight image 0 Trump secures US presidential victory, per AP

This bullish momentum put pressure on shorters, with Coinglass data showing $310 million in liquidations for shorts on November 6. 

Trump-Led Market Rally Wipes Out Crypto Bears Overnight image 1 Trump-Led Market Rally Wipes Out Crypto Bears Overnight image 2 Crypto liquidations for the last six months, per Coinglass

Reflecting this shift, the long-short ratio rose to 1.0585, marking the first instance since October 29 where buy volume outpaced sell volume, underscoring renewed optimism across the market as Trump secured a second term.

Trump’s Crypto Pledges

BlackRock CEO Larry Fink recently stated that crypto’s future looks bright regardless of who wins the election, yet many Republican supporters see Trump’s victory as a pivotal moment for the industry.

Crypto advocates now anticipate the implementation of pro-crypto policies that could propel the US digital asset industry forward under Trump’s leadership. 

During Trump’s election campaign, several pledges were made to support crypto including the formation of a national Bitcoin reserve , the removal of SEC chair Gary Gensler, though it remains unclear if a president has the authority to make such a direct change, and favorable Bitcoin mining policies .

On the Flipside

  • Bitcoin hit a new $75,400 all-time on November 6.
  • Trump previously stated that crypto is “based on thin air.”
  • Gold fell 1.5% while the DXY soared to an 18-week high of 105.313.

Why This Matters

While short sellers nurse their wounds, the crypto industry watches if Trump delivers on his campaign promises.

Trump’s election campaign pulled in millions in crypto donations.
Here’s How Much Crypto Donations Have Poured in to Back Trump

Binance donates to support Valencia flood victims.
Binance Donates $3M as Valencia Flood Victims Express Rage

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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