Cardano emerges as a top gainer BTC nears $80k

Cardano (ADA) saw a strong 33% surge in the past 24 hours, emerging as the top gainer among the top 100 cryptocurrencies. It reached a price of $0.594, the highest level seen since April, before stabilizing at $0.57.

This surge brought Cardano’s market cap to $20 billion, securing its position as the ninth-largest cryptocurrency by market capitalization. Additionally, its daily trading volume exceeded $2 billion, reflecting significant investor interest and bullish momentum, partly driven by Bitcoin’s all-time high performances.

Bitcoin

Bitcoin has recently experienced a remarkable spike in value, driven by a series of market dynamics that seem to be influenced by external political events. On November 5, the cryptocurrency saw a surge after Donald Trump secured both the popular vote and the electoral college, briefly capturing the attention of investors. This momentum carried Bitcoin to an all-time high of $79,780 at 05:43 UTC, before settling slightly lower around $79,000 as some traders began taking profits.

This surge propelled Bitcoin’s market capitalization to a new milestone of $1.58 trillion, with the circulating supply standing at 19.78 million coins. The significant price movement came amid a broader surge across the cryptocurrency market. According to CoinGecko, the global crypto market capitalization now stands at $2.85 trillion, an increase of $420 billion over just the past week. Additionally, the daily trading volume across the entire market hit an impressive $172 billion.

As Bitcoin continues to rise, its increasing market cap and volume reflect growing investor confidence, likely driven by both the political landscape and ongoing interest in digital assets.

What’s pushing crypto?

Trump’s victory in the 2020 election appeared to ignite a significant upward movement in the cryptocurrency market, earning him the title of the “first pro-crypto president” as many in the crypto community saw his win as a positive catalyst. Bitcoin reached an all-time high of $75,000 following Trump’s electoral votes crossing the 270 mark on Nov. 6. The momentum didn’t stop there, as spot Bitcoin exchange-traded funds (ETFs) in the U.S. recorded a record net inflow of $1.37 billion on Nov. 7, pushing total net inflows in the crypto sector to over $25 billion. This surge added to the already positive sentiment in the market.

However, the upward trajectory also triggered significant liquidations. According to data from Coinglass, total crypto liquidations surged by 68% in the past 24 hours, reaching $384 million. Bitcoin accounted for $102 million in liquidations, with $13 million in long positions and $89 million in short positions being liquidated. Typically, the liquidation of short positions can fuel further upward momentum as it forces traders to cover their positions, adding buying pressure.

Similarly, Cardano (ADA) saw $7.3 million in liquidations, with $1.6 million in long positions and $5.7 million in shorts getting wiped out.

While the record inflows and liquidations are indicative of a highly active and volatile market, they also signal increased risk. High trading volume coupled with liquidations can often lead to sharp price fluctuations, and the start of long liquidations combined with short-term profit-taking could be an early sign of a market-wide correction in the near future. This volatility is something traders and investors will need to watch closely.