As a seasoned researcher with over a decade of experience in the volatile world of cryptocurrencies, I can attest that Thursday’s market events were nothing short of electrifying. The historic re-election of Donald Trump as president seemed to have ignited a new wave of optimism and speculation, sending prices soaring across the board.
On Thursday, a total of $256 million worth of crypto assets were liquidated due to price spikes that occurred after the 2024 U.S. presidential election, where Donald Trump was reelected as president for a second term.
Bitcoin, represented by the symbol BTC $76 068, surged to a new record high of $76,000 following several months of subdued activity in the market. Similarly, other significant cryptocurrencies such as Ethereum ETH $2 918 and Solana SOL $202.4 also experienced a surge, breaking through previous price lows.
Ethereum Leads Liquidations as Prices Surge
In a surprising turn of events, the value of Ethereum approached nearly $3,000, causing quite a stir among traders who had taken on leveraged positions. As per information from CoinGlass, around $65.01 million worth of Ethereum positions were liquidated, with short positions accounting for about $48 million. This unexpected price increase also led to the closure of approximately $18 million in long positions.
As a crypto investor, I had high hopes for Ethereum’s post-election performance, given the anticipation surrounding Donald Trump’s campaign promises to incorporate cryptocurrencies into the U.S. financial system. Trump’s rhetoric indicated he would put an end to the Securities and Exchange Commission’s (SEC) stranglehold on the industry and even went as far as promising to dismiss Gary Gensler if elected, which could have been a significant boost for Ethereum and the crypto market in general.
At one of his campaign events, he additionally proposed creating a U.S. national Bitcoin reserve by utilizing the Bitcoins confiscated by the government.
My administration intends to maintain full control over every single Bitcoin that the U.S. government already owns, as well as any additional Bitcoins acquired in the future,” he stated.
The optimistic outlook led traders to make trades following his victory announcement on November 6, but this move proved costly when prices shot up swiftly afterwards.
Bitcoin Traders Face Losses as Prices Soar Above $75,000
In the past day, Bitcoin’s price surge above $76,000 led to $53 million in forced liquidations of perpetual contracts. According to CoinGlass data, traders who anticipated a falling market collectively lost approximately $30 million, while those who overestimated Bitcoin’s rise faced around $23 million in compulsory selling.
Other digital currencies, including Dogecoin (DOGE), did not escape the turbulence, as it plummeted approximately $10 million in value. Meanwhile, NEIRO, a coin often referred to as the successor of Dogecoin, faced losses totaling around $7 million in liquidations. The majority of these liquidations were reported on significant trading platforms, with Binance accounting for nearly $97 million of the total, followed closely by OKX and Bybit, which suffered losses amounting to $46 million and $45 million respectively.
In total, the liquidations impacted approximately 77,733 cryptocurrency traders. One significant instance of this was a trader losing over $22 million in a position involving Ethereum and Tether on Bitmex.
In spite of these changes in the market, traders continue to be busy, eagerly seeking opportunities to profit from fluctuations in significant assets like Bitcoin (BTC) and Ethereum (ETH). Just within the past hour, around $7 million worth of trades have been liquidated. A little over four hours ago, a combined total of $18 million was liquidated on platforms such as Binance, OKX, and Bybit.
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2024-11-08 12:57