Following Trump’s election victory, the Bitcoin price rose to an all-time high yesterday, while the crypto market experienced a massive wave of liquidations.
As Republican candidate Donald Trump secured the lead in the presidential elections, Bitcoin (BTC) witnessed a dramatic rise, allowing it to reach an all-time high of $76,480.
The bullish momentum led to massive liquidations, reaching $611.5 million on Nov. 6, according to data from Coinglass. This figure represented the largest single-day liquidation since August.
Map of crypto liquidations | Source: Coinglass
Most of the liquidations were caused by traders holding short positions who were betting against Bitcoin’s upward momentum. Approximately 70% of the liquidations, or $426,891 million, resulted from short sales. Conversely, long positions were also hit with liquidations of $183.46 million amid high volatility.
The pressure on short positions continues, with $107.69 million of short positions liquidated so far. Although liquidation volume was low, long positions saw approximately $63.86 million wiped out today.
Meanwhile, further data reveals that open interest remains high, indicating that trading activity remains high amid confidence among investors.
Total crypto open positions increased by 7.39% in the last 24 hours, reaching $83.14 billion. However, as the initial excitement from Bitcoin’s rise began to normalize, futures trading volume fell 20.69% to $235 billion.
Moreover, Bitcoin’s long/short ratio has decreased slightly, falling by half a point to the current level of 1.01. This ratio indicates a slight preference for long positions among investors, signaling overall balanced sentiment.
Notably, Bitcoin’s all-time high yesterday broke the previous peak of $73,679 set in March. Although the price faced a slight pullback after the ATH, the rise marked the biggest increase since August with an intraday rise of 9.01%.
The rally in particular lifted the entire market, pushing the value of the global crypto market to $2.52 trillion yesterday, a five-month high. This big move also contributed to yesterday’s intense liquidations.
Bitcoin is up 2.41% in the last 24 hours and is trading at $75,091 at the time of writing. Volatility in the market decreased, with trading volume decreasing by approximately 21% to $76.55 billion. Despite this, the asset may try to close the week above $76,000 to maintain its bullish outlook.