The cryptocurrency market is on a tear, propelled by the growing likelihood of Donald Trump’s victory in the upcoming election. Bitcoin, the leading cryptocurrency, is pushing towards the $70,000 mark, a level not seen since July. This surge is accompanied by gains across the broader crypto market, with notable performances from Ethereum, Dogecoin, and Shiba Inu.
While the market paints a rosy picture, data suggests a potential shift in momentum. IntoTheBlock data reveals a decline in both large transaction volume and daily active addresses, suggesting a decrease in overall market activity. Furthermore, transactions exceeding $100,000 have dropped significantly in a single day, indicating a potential shift in institutional interest.
Adding to this, Coinglass data highlights that over 64,000 traders were liquidated in the past 24 hours, totaling over $153 million in losses. This suggests a level of over-leveraging in the market, which could lead to increased volatility in the days ahead.
Despite the current market enthusiasm, experts caution against overexuberance. Crypto analyst Miles Deutscher advises against using leverage, as the market is expected to be highly volatile with reduced liquidity in the lead-up to the election. He advocates for spot trading to mitigate losses and encourages traders to wait for clear trends before jumping in, reminding them that initial price movements can be misleading.
Benjamin Cowen, another prominent trader, highlights the July high of $70,040 as a key milestone for Bitcoin. As the cryptocurrency approaches this level, the market’s direction will be closely watched.
The potential impact of the US election on cryptocurrency adoption and the growing influence of Bitcoin as an institutional asset class will be the focal point of Benzinga’s upcoming Future of Digital Assets event on November 19th. This event will offer valuable insights into the evolving landscape of the cryptocurrency market.
