TL;DR:
- Bitcoin surged past $80,000 during trading, reaching a peak of $81,000 before stabilizing around $78,297.
- Liquidations in the global crypto derivatives sector surpassed $950 million within a 24-hour period, with over $560 million associated with short positions.
- The cryptocurrency’s total market cap was approximately $1.58 trillion, and its 24-hour trading volume hit $31.67 billion.
On Wednesday, November 4, a strong bullish trend emerged in the cryptocurrency market, with Bitcoin bouncing back above $80,000 after initial U.S. midterm election results surfaced, reversing a dip towards $75,618.
The trading session displayed significant volatility, closely linked to the U.S. election outcomes. Early in the counting process, Bitcoin’s price dropped to a low of $75,618. However, buying interest sparked a notable recovery of over 3.7% in just 24 hours, leading to a temporary high above the crucial $80,000 level, peaking at $81,000.
As the market data from CoinMarketCap and other aggregators indicate, a slight pullback occurred, with Bitcoin trading approximately at $80,674, following a profit-taking trend after surpassing $80,000.
This price fluctuation caused a wave of forced liquidations across major futures trading platforms.
Data from CoinGlass shows that liquidations across the network totaled over $951 million in the last 24 hours. Out of this amount, more than $560 million were due to short positions being liquidated as the price surged past the $79,500 resistance.
Additionally, metrics from Binance and CoinMarketCap revealed that liquidations across the wider market increased by over 20% compared to the prior session, indicating a recalibration of leverage as political uncertainty receded.
Impact of Elections and Trends in Derivatives Volume
The results of the U.S. Congressional elections influenced the strategies of both retail and institutional traders. Predictions from market analysts initially indicated concern over potential legislative gridlock. However, as risks diminished, the positive trend on Wall Street coincided with Bitcoin’s upward movement.
Reports from Investing.com suggested that Bitcoin’s rise led to gains for major altcoins. Ether saw a 4.1% increase, trading above $2,380, while coins like Solana and Cardano also increased by more than 2% during the same time frame.
Despite Bitcoin surpassing $80,000, trends in fund flows show notable differences.
Market insights from Bitfinex reveal that cumulative inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) have recorded some outflows, keeping a close eye on the spot market’s capacity amid speculative derivatives trading.
Bitcoin’s 24-hour trading volume reached $31.67 billion, resulting in a volume-to-market-cap ratio of 2.01% according to CoinMarketCap data. The circulating supply stands at 20.11 million coins, with immediate support levels found between $75,600 and $75,700.
Traders are now focusing on the upcoming Federal Reserve’s monetary policy meeting and the release of U.S. Consumer Price Index (CPI) data slated for next week.