Bitcoin Blasts Past $76K for First Time as Violent Crypto Rally Liquidates Nearly $400M Shorts

Bitcoin (BTC) hit a fresh record high of $76,330 during the U.S. day and is up 9.5% over the past 24 hours. Ethereum’s ether (ETH) surged to just shy of the $2,700 level, up 11% during the same period. The broad-market CoinDesk 20 Index advanced 10.7%, led by gains of decentralized exchange Uniswap (UNI), layer-1 blockchain Solana (SOL) and decentralized GPU rendering platform Render (RNDR).

During the course of the day, a significant surge in cryptocurrency values led to approximately $592 million worth of liquidated positions in leveraged derivative trading for all cryptos. Most of these liquidations, totaling around $390 million, were short positions that had been taken by investors betting on lower prices, marking the most substantial short squeeze seen in at least the past six months.

Additionally, cryptocurrency-related stocks surged along with the trend, with Coinbase Global Inc.’s (COIN) impressive 31% increase spearheading the rise. Similarly, Bitcoin mining companies such as Riot Blockchain Inc. (RIOT), TeraWulf Inc. (WULF), and CleanSpark Inc. (CLSK) saw gains of approximately 20% to 25%.

The event transpired during an optimistic trading day, with the Nasdaq and S&P 500 surging by 3% and 2.5%, respectively, in response to Trump’s clear victory in the U.S. elections. Those wagering on the blockchain-facilitated prediction platform Polymarket anticipate that Republicans will secure control of both Congress houses. This predicted outcome, as seen by many analysts, could further boost the cryptocurrency market.

David Lawant, head of research at FalconX’s crypto prime brokerage, stated in a Wednesday report that the election result seems to have been favorable for the industry, paving the way for potential regulatory advancements. This optimistic outlook may strengthen in the approaching months and quarters. Such clarity could lead to the creation of new crypto ETF products, encompassing major cryptocurrencies as well as a comprehensive crypto index. Additionally, it might provide more assurance to entrepreneurs and investors regarding U.S. token launches. Nevertheless, Lawant cautioned about temporary risks in the near term, which may consist of unexpected regulatory actions from departing officials.

Bitcoin reaching a fresh all-time high signifies a significant breakaway from its challenging, 8-month period of stagnation, during which it put crypto investors’ resilience to the test. Experts predict that this pioneering digital currency might still have further potential for growth.

According to well-respected cross-asset trader Bob Loukas in a recent post, there seems to be no more justification or explanation left for bitcoin not experiencing significant growth over the next 9-12 months, as seen from various perspectives.

Following the conclusion of the election, the Federal Open Market Committee (FOMC) meeting on Thursday now becomes a significant event to observe. In this gathering, most market participants predict that policymakers will reduce the Federal funds rate by 0.25%, as indicated by the CME FedWatch Tool.