Bitcoin surged above $71,000 on Tuesday, marking a notable 5% gain within 24 hours and breaking through a critical resistance level. The rally, driven by high-volume buying from major traders, or “whales,” comes just a week before the U.S. elections—an event that many believe could positively impact Bitcoin regardless of the political outcome.
Short Sellers Face Major Liquidations
The unexpected rise left short sellers facing significant losses. In total, $176 million in short positions were liquidated, with Bitcoin and Ethereum short traders incurring losses of $88.89 million and $39.73 million, respectively. This wave of liquidations underscores the market’s volatility and the potential risks for traders betting against the current trend.
Strong Demand from ETFs and Whales
Exchange-traded funds (ETFs) have been driving a strong demand for Bitcoin, with inflows of approximately 47,000 BTC over the past two weeks. Much of this buying activity has been noted on Binance, particularly during Asian trading hours, indicating a growing interest from high-volume traders. This sustained demand from institutional players is fuelling expectations of further gains.
Broader Market Sees Positive Gains
Following Bitcoin’s lead, other cryptocurrencies posted notable increases. Dogecoin soared by 15%, Shiba Inu by 8%, and Ethereum by nearly 5%. Cardano, Solana, and BNB Chain also saw gains of over 3%, reflecting broader market optimism around the upcoming U.S. election and increased interest in crypto assets.
Traders Eyeing $75,000 Target
With the U.S. elections nearing, options traders are setting their sights on a potential $75,000 target for Bitcoin. As traders anticipate the election’s impact on traditional markets, many expect a favorable environment for Bitcoin’s continued growth, reinforcing the bullish sentiment that new highs could be on the horizon.
