Bitcoin hits new ATH surpassing $1.6T market cap

Bitcoin hit all-time highs last week as the crypto market recorded a strong bullish trend after GOP candidate Donald Trump won the US presidential election.

Bitcoin (BTC) rose 18% last week and is up 3% in the last 24 hours. The leading cryptocurrency reached an ATH of $81,858 earlier today; After a slight correction, it is currently trading at $81,000.

BTC price | Source: crypto.news

Thanks to consistent gains, BTC market cap has surpassed $1.6 trillion. Daily transaction volume also doubled and reached 92 billion dollars. Bitcoin’s market dominance stood at 55.4% at the time of writing.

So-called digital gold has surpassed Meta’s $1.48 trillion market cap to become the ninth largest asset.

Bitcoin’s rally has triggered bullish sentiment among digital asset investors and pushed the broader market closer to 2021 highs. According to data provided by CoinGecko, the global crypto market value increased by 3% in the last day and stands at over $2.9 trillion.

This level has not been seen since mid-November 2021.

Data from CoinGecko shows that total crypto trading volume has increased by 80% and now stands at $306 billion. This indicates increased interest from market participants.

Why is Bitcoin rising?

Bitcoin and the marketwide rally began after Trump edged out Vice President Kamala Harris in the US presidential election, with the community dubbing him the “first pro-cryptocurrency US president.”

Trump’s win served as a major catalyst for the crypto market, triggering fear of missing out, also known as FOMO, among digital currency investors.

Liquidations from short positions began to increase as Bitcoin surpassed its March ATH of $73,000. According to data from Coinglass, total crypto liquidations reached $630 billion in the last 24 hours.

According to Coinglass data, Bitcoin alone saw $121 million in liquidations, including $38 million long and $83 million short. Historically, short liquidations initiate upward momentum, and investors generally expect high volatility.

Increasing trading volume increases market-wide volatility as prices increase along with the election trend. Therefore, a possible correction can be expected.

According to data from IntoTheBlock, whales accumulated almost 32,000 BTC on November 10. As the chart shows, major bearer activity has been trending in the same direction as the BTC price since November 6, election day.

BTC large holder net flow | Source: IntoTheBlock

The sudden increase in Bitcoin’s whale accumulation also suggests FOMO among market participants.