"Trump Trade" fuels Bitcoin Surge: Price Breaks $70,000, Over 65,000 Liquidated

"Trump Trade" fuels Bitcoin Surge: Price Breaks $70,000, Over 65,000 LiquidatedBitcoin price hit a new high of $71,000 on October 29th, surpassing its June peak and briefly touching $74,000. This surge coincided with a parallel rally in other cryptocurrencies, with Dogecoin rising over 18% and Ethereum almost 5%

"Trump Trade" fuels Bitcoin Surge: Price Breaks $70,000, Over 65,000 Liquidated

Bitcoin price hit a new high of $71,000 on October 29th, surpassing its June peak and briefly touching $74,000. This surge coincided with a parallel rally in other cryptocurrencies, with Dogecoin rising over 18% and Ethereum almost 5%. However, amidst the frenzy, a significant number of short sellers faced liquidation. Coinglass data revealed that over 65,000 accounts were liquidated within the past 24 hours, resulting in total losses of $228 million.

U.S. Election Looms, "Trump Trade" Heats up, Driving Bitcoin Higher

Analysts believe the approaching U.S. presidential elections will bring a "storm" to the cryptocurrency market. Rising optimism surrounding the "Trump Trade" is seen as a primary driver behind Bitcoin's recent gains.

The "Trump Trade" refers to an investment strategy based on the expectation of a Trump victory. During his presidency, Trump expressed support for cryptocurrency development, making it a part of the "Trump Trade."

Studies by Donghai Securities show an increase in bets on Trump in several key swing states, with his poll support rising noticeably. Betting platform Polymarket predicts a 65.3% chance of Trump winning, significantly exceeding Harris's 34.8%.

Henrik Andersson, Chief Investment Officer of Apollo Capital, believes Trump's victory is crucial for the future of the cryptocurrency market. He forecasts that if Trump wins, risk assets will continue to rise, pushing Bitcoin beyond $100,000 by the end of the year.

Edouard Hindi, CIO of Tyr Capital, also anticipates a substantial rise in Bitcoin prices before the U.S. election on November 5th. However, after the election results are announced, profit-taking by investors could trigger a sell-off.

Bitcoin Spot ETFs Hold Near 1 Million Coins, Inflows Continue

Beyond the "Trump Trade," continuous buying by Bitcoin spot ETFs provides significant market momentum.

Data from Apollo and SoSoValue indicate that U.S. Bitcoin spot ETF issuers currently hold over 976,000 Bitcoin, valued at over $66.2 billion, nearly 5% of Bitcoin's total market capitalization. HODL15Capital reports that American Bitcoin spot ETFs have purchased $30 billion worth of Bitcoin in the past 10 months.

Market traders anticipate the U.S. Bitcoin spot ETFs to purchase their 1 millionth Bitcoin potentially this week. Based on current holdings, the ETFs need to acquire roughly 23,000 Bitcoin. Assuming a weekly average, this means a daily net inflow of approximately $301 million.

What Impact Will the "Trump Trade" Have on the Market?

CITIC Securities, in a research report, notes that major asset classes have already begun pricing in the "Trump Trade." If a Republican sweep occurs, U.S. stocks are expected to benefit, U.S. bonds are likely to be negatively impacted, the dollar would likely strengthen, and gold's trajectory may experience further catalysts.

For Bitcoin, the positive effects of the "Trump Trade" cannot be ignored. However, unexpected election results could lead to significant market volatility. Investors should remain cautious and invest prudently.

Disclaimer: The above content is for informational purposes only and should not be considered investment advice. Investing carries risks, and due diligence is encouraged.