Cryptocurrencies experienced a notable uptick as the US presidential election results started to unveil. Bitcoin, after a period of retracement, climbed back above the $71,000 mark, approaching its all-time high of $73,737. Ethereum also saw positive momentum, nearing the $2,500 price point, while Dogecoin, known as a meme coin, registered a more than 8% surge as the election outcome began to take shape.
In the midst of the election drama, Donald Trump's lead in key states like Georgia and Florida had a palpable impact on market dynamics. Consequently, Trump's odds on prediction markets like Polymarket soared to 72%, influencing trading activity and investor sentiment. Short sellers felt the brunt of the market movement as over $133 million in bearish positions were liquidated due to the rapid rally, reflecting the volatility and uncertainty surrounding the election results.
The cryptocurrency landscape saw a mix of bullish and bearish signals amidst the election night frenzy. Bitcoin's Open Interest spiked by 3.70%, indicating growing interest and activity in the market, while Ethereum faced some sell-offs. On the trading front, Binance's top traders maintained bullish positions on Bitcoin, showcasing confidence in the leading digital asset. Coinciding with these developments, the Cryptocurrency Fear and Greed Index suggested that market participants remained predominantly greedy, underscoring the speculative nature of the market environment during this pivotal moment.
Outside the cryptocurrency realm, traditional markets also reacted to the unfolding election scenario. Stocks, represented by indices like the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite, witnessed significant gains on anticipation of the election results. The positive momentum extended to stock futures, with a notable increase in Dow-related futures, signaling optimism and confidence in the broader financial markets. Market analysts, like Michaël van de Poppe, analyzed the market movements in conjunction with the election dynamics, predicting potential impacts on the ongoing bull market and labor market based on unfolding events. Additionally, concerns about profit-taking by large Bitcoin holders emerged as noted by analyst Ali Martinez, pointing to shifts in whale behavior in the lead-up to the election.