Originally published on: November 11, 2024
Crypto traders who were betting on a market downturn were in for a shock as Bitcoin made an unprecedented surge, smashing through the $81,000 barrier and causing massive losses for short positions.
Data from CoinGlass revealed that within just 12 hours, approximately $180 million worth of short positions were liquidated across the crypto market.
Following President-elect Donald Trump’s victory in the US election, Bitcoin continued its rally, climbing over 6% to reach an all-time high of $81,358 on November 10, according to CoinGecko.
The biggest blow was dealt to Bitcoin shorters, with around $67 million in liquidated positions, while Dogecoin and Ether short positions saw losses of $23 million and $21 million, respectively.
Meanwhile, long bets worth $256 million were also liquidated as more than 218,000 traders found their positions being wiped out, totaling a staggering $682.7 million in combined short and long positions.
The largest single liquidation of $15.6 million occurred when a user on OKX exchanged Bitcoin for Tether.
In the past 30 days, the highest number of short positions, nearly hitting $350 million, were liquidated on November 6 as Bitcoin briefly dipped below $69,000 before the US election.
Bitcoin’s recent surge also saw its market dominance rise to just above 59%, nearing its peak of 60% on October 1, the highest level since April 2021.
With market sentiment turning bullish post-Trump’s victory and pro-crypto politicians securing seats in the Senate and House of Representatives, Caroline Bowler, CEO of BTC Markets, noted a significant increase in retail investor activity.
She attributed this surge in interest to the “Trump Effect,” with BTC Markets experiencing a 300% spike in user logins last week, marking the highest engagement in six months as retail investors flocked back to crypto amid the resurgence of Trump’s political influence.
According to onchain analyst James Check, Bitcoin has entered the “Euphoria zone” by shattering previous all-time highs while maintaining a more stable Market Value to Realized Value Ratio, thanks to months of consolidation that prepared the ground for its upward trajectory.
As Bitcoin continues its meteoric rise, the crypto market is witnessing unprecedented shifts and opportunities that are reshaping the landscape for traders and investors alike.
