Key Insights:
- Bitcoin surpasses $71K with rising trading volumes and whale buying ahead of the U.S. elections, leading to $143M in short liquidations.
- Increased ETF inflows and bullish crypto options suggest growing demand as traders anticipate new highs by November 8 amid political uncertainty.
- Altcoins follow Bitcoin’s rally, with Dogecoin, Ethereum, and Shiba Inu posting strong gains driven by pre-election speculation and market sentiment.
Bitcoin experienced a strong upward move, climbing past $71,000 during Asian trading hours on Tuesday, according to CoinGecko data. At press time, BTC was trading at $71,173.24. The 3.8% rise in the past 24 hours came with increased trading volumes, reaching $48 billion, nearly double the figures recorded on Monday.
This surge appears to have been driven by heightened whale activity and increased demand from Bitcoin exchange-traded funds (ETFs) ahead of the U.S. elections, scheduled for early November.
Record Liquidations as Bitcoin Tops $71,000
The rapid price increase of Bitcoin led to a significant wave of short liquidations. Data from CoinGlass revealed that over $143 million in short positions were liquidated in the last 12 hours, with $73 million related to Bitcoin and $39 million connected to Ethereum. These liquidations occurred as traders betting against higher prices were forced to exit their positions, potentially fueling further upward momentum.
“Some shorts against the $70,000 level are being liquidated as the market anticipates a Trump victory,” commented Darius Sit, co-founder of QCP Capital. This sentiment reflects the broader view among traders that the upcoming U.S. elections could create favorable conditions for Bitcoin’s price performance, regardless of the outcome.
Bitcoin's rally continues, led by Binance exchange
“The current #Bitcoin price is being driven by Binance whales, with sustained inflows of U.S. capital.” – By @mignoletkr
Read more 👇https://t.co/H0a5ChBr66 pic.twitter.com/5d55vNsIBP
— CryptoQuant.com (@cryptoquant_com) October 28, 2024
Whale Activity and ETF Inflows Drive Demand
Market participants are attributing part of Bitcoin’s rally to substantial whale activity, primarily on Binance, one of the largest cryptocurrency exchanges. Whales, or large-scale traders, have been net buyers of Bitcoin, predominantly during Asian trading hours.
CryptoQuant analyst Mignolet pointed out that these purchases are contributing to the current bullish sentiment and price gains.
Additionally, Bitcoin ETFs have seen a net inflow of 47,000 BTC over the past two weeks, further supporting demand. These inflows suggest growing interest from institutional investors, who may be anticipating potential upside linked to macroeconomic factors and the political landscape in the U.S.
Altcoins Follow Bitcoin’s Upward Trend
The broader cryptocurrency market also saw gains, led by altcoins such as Dogecoin (DOGE), which surged 15%, and Shiba Inu (SHIB), which rose 8%. Ethereum (ETH) climbed 4.9%, while Cardano (ADA), Solana (SOL), and BNB Chain’s BNB each gained over 3%.
Dogecoin’s jump has been linked to increased popularity for former President Donald Trump, who is widely perceived as a pro-crypto candidate. The upcoming elections have thus become a central topic among traders, as they speculate on potential policy directions that could impact the crypto sector.
Traders Anticipate New Highs Ahead of November Elections
The upcoming U.S. presidential election, set for November 5, remains a focal point for Bitcoin traders, who are largely optimistic about the market’s trajectory. Historical patterns suggest that political events like elections can create volatility, but traders are currently placing bets on bullish outcomes, regardless of whether Republican or Democrat candidates prevail.
Open interest for crypto options expiring on November 8 indicates strong expectations for further gains, with the $75,000 strike price attracting the most activity. This concentration of bets suggests that traders are positioning for the possibility of Bitcoin testing fresh highs in the coming weeks.
Bitcoin’s current performance reflects a combination of political uncertainty, increased investor interest, and growing institutional inflows.
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