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The crypto market is up today, as former US President Donald Trump leads in the presidential elections amid massive liquidations.
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The cryptocurrency market is in the green on Nov. 6 as provisional results show crypto-friendly former President Donald Trump is expected to win the 2024 US presidential election.
The total crypto market capitalization is up 10.5% over the last 24 hours, at $2.47 trillion. The overall trading volume has also jumped 113% on the day to $168 billion, reinforcing the intensity of buy-pressure.
Crypto market performance Oct. 29. Source: Coin360
Bitcoin (BTC ), the largest cryptocurrency by market capitalization, led the gains on Nov. 6, rising as much as 8% to hit new all-time highs of $75,397 on Bitstamp. Ether (ETH) also followed BTC’s footsteps and is up 6.5% on the day to trade at $2,590 at the time of writing.
Other top-cap altcoins such as BNB Chain’s BNB, Solana (SOL) and Dogecoin (DOGE) recorded 4.5%, 15.64%, and 21.5% daily gains, respectively.
Let’s look closer at the factors driving the crypto market up today.
Trump’s projected win boosts crypto market
Bitcoin and other cryptocurrencies surged during the Asian morning hours on Nov. 6 as election results showed Republican candidate Donald Trump taking an early lead in the US presidential race.
Traders on the decentralized prediction market platform Polymarket now forecast 99.4% odds of Trump winning with over $3.6 billion bet volume. The odds of a Democratic Party candidate Kamala Harris winning are now less than 1%.
According to AP News, Trump maintains the lead and now has 267 electoral votes against Harris, who has 224 in the race. Trump needs at least 270 electoral votes to be declared a clear winner.
2024 US presidential election results. Source AP News
The crypto community views a Trump victory as a bullish catalyst for the long-term growth of the industry, as he is expected to foster clear crypto regulations and deliver on some of his promises, including firing Securities and Exchange Commission Chair Gary Gensler “on day one” and support Bitcoin mining in the US.
Related: Bitcoin heads to the moon — Watch these BTC price levels next from $75K
Risk-on sentiment drives crypto market higher
The ongoing crypto rally mirrors the strength witnessed in US equities. The S&P 500 rose by 1.2% to close the day at 5,782.76 on Nov. 5, while the Nasdaq composite index jumped 1.43%.
This performance highlights the impact of presidential elections on the valuation of the largest companies listed on stock exchanges in the United States.
“The S&P 500 futures add $800 BILLION of market cap as Donald Trump wins the 2024 presidential election,” stated capital markets commentator The Kobeissi Letter in a Nov. 6 post on X.
“The US dollar has also soared to its highest level since July 2024.”
24-hour performance of US equities Source: Financial Visualizations
Meanwhile, market participants still have their focus on the US Federal Reserve’s interest rate cut decision on Nov. 7
The US central bank is expected to continue cutting rates on Nov. 7, but it may not be as aggressive as the 50 basis point cut it began with on Sept. 18.
According to data from CME Group’s FedWatch Tool, the odds of the Fed leaving the interest rates unchanged at the Nov. 7 FOMC meeting have reduced to 0% at the time of writing, against a 98.9% expectation of a 0.25% rate cut and a 1.1% possibility of a 50 basis points rate cut.
Fed target rate probabilities for Nov. 7 FOMC meeting. Source: CME Group
Market volatility causes over $500M in liquidations
The rise in the prices of major cryptocurrencies has led to a rush of liquidations across the derivatives market. Short derivatives traders appear to have been caught off guard, leading to a quick spat of leveraged liquidations.
In the past 24 hours, over $504 million in crypto positions have been liquidated across the crypto market, with $409 million wiped out in the last 12 hours. Short BTC leveraged positions totaling $218.8 million have also been liquidated on the day.
Crypto market liquidations. Source: CoinGlass
Over 110,523 traders were liquidated, with the largest single liquidation being BTC/USDT on Binance, valued at $74.98 million.
A predominance of short liquidations suggests that the crypto market was overleveraged on the bearish side, primarily due to growing euphoria around the continuation of the bull cycle if Trump becomes the new president.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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