Originally published on: November 05, 2024
Bitcoin experienced a significant 3.7% price surge on Nov. 5 as the United States presidential election stirred up volatility in the crypto market.
The rapid increase in Bitcoin’s price pushed it near $70,300 on Bitstamp before correcting back to $69,500. The sudden surge led to the liquidation of short positions, catching the market off guard.
Popular trader Exitpump noted the sudden spot buying activity that drove the latest Bitcoin price action, sparking discussions among traders about potential market trends.
Some traders pointed out the similarities between the current market landscape and past election years, with suggestions that Bitcoin may have already reached a local bottom before the US election.
According to onchain analytics platform CryptoQuant, historical data revealed a rally in Bitcoin’s price following the last three US presidential elections. The platform described Bitcoin as “fairly valued,” indicating potential for a price rally post-election if positive catalysts emerge.
Market volatility leading up to the election night also aligned with expectations, with trading firm QCP Capital predicting a +/-3.5% movement in Bitcoin’s spot price.
Despite the election fever, Charles Edwards, founder of digital asset fund Capriole Investments, remained optimistic about Bitcoin’s continued bull run. He pointed to increased inflows into US spot Bitcoin exchange-traded funds as a sign of market resilience.
It’s important to note that this article does not provide investment advice. Readers are encouraged to conduct their own research before making any investment decisions. Stay informed about market trends by subscribing to our newsletter for critical insights and opportunities in the market.
