Crypto markets soar as Donald Trump declares US Election victory

BITCOIN hit an all-time high above $75,000 this morning, finally breaking through the longstanding peak of $73,700.

Crypto markets are buzzing, and many analysts attribute the rally to Trump’s increasingly likely election as US President.

Traders seem to love his pro-crypto stance, which some speculate could bring a friendlier regulatory environment to the sector. Bitcoin and Ethereum have both spiked over 8%, while meme-coins like Dogecoin and the native crypto of decentralised exchange Uniswap are stealing the show with 20% and 30% gains, respectively, over the last day. The market cap for all cryptocurrencies jumped 14% overnight, and trading volumes across the industry have more than doubled.

The rally has also swept up a hefty number of short positions. Data from Coinglass shows a wave of liquidations as Bitcoin soared, meaning many short traders faced heavy losses and were forced to buy back their positions – adding more fuel to the rise.

For context, short sellers bet against a rise in prices, and when their positions get squeezed, they cover by buying back the assets they borrowed, which can accelerate upward momentum.

As we head into European trading hours, the question on investors’ minds is: Will this rally hold? And what happens when US traders take a look at these numbers later in the day? Stay tuned.

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In the Markets

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🌦️The Data... 

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Total crypto market cap

$2.48 trillion (+11%)

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What Bitcoin did yesterday

Daily high $70,495 |  Daily low $67,473

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Bitcoin market capitalisation

$1.45 trillion (59% of market)

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Bitcoin 24-hour trading volume

$93.28 billion (+123%)

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SP500

+1.23%

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Fear and Greed Index

Greed 

‍Source: Coinmarketcap

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin Relative Strength Index (RSI)

64.7

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

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Post Script…

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Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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