U.S. Election Sparks $483M in Crypto Liquidations as Bitcoin Hits New High

The odds are swinging in favor of pro-crypto presidential candidate Donald Trump, and the cryptocurrency market is responding with a sharp rise, led by Bitcoin (BTC) and Dogecoin (DOGE). Trump now holds 246 electoral votes, compared to Kamala Harris’s 189, closing in on the 270 votes needed to secure the presidency.

His lead in key swing states is boosting optimism among crypto investors.

Here’s everything you should know.

Bitcoin and Crypto Market Cap Spike

During early trading in Europe, the total crypto market cap jumped over 6%, reaching about $2.57 trillion on Wednesday, November 6. Bitcoin climbed nearly 9%, trading at approximately $74,712 at the time of this report.

Meanwhile, Dogecoin led the altcoin and most importantly the meme coin industry in notable gains. Backed by tech billionaire Elon Musk,  DOGE price surged over 25 percent in the past 24 hours to trade around $0.204 at the time of this writing,

Heavy Crypto Liquidations Led by Whale Traders

As fear of missing out (FOMO) intensified, traders joined a widespread short squeeze that led to liquidations totaling over $483 million in the past 24 hours. Notably, more than $358 million came from short traders, many of whom have shifted bullishly in hopes of recouping their losses.

On-chain data from Lookonchain reveals that one whale trader attempted to short Bitcoin just as it hit a new all-time high, resulting in a forced liquidation of nearly $75 million. Meanwhile, a savvy whale deposited 195.4 WBTC (worth around $14.5 million) on Binance in the past two hours, securing a $4.48 million profit as Bitcoin hit record levels.

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Big Investors Stay Wary

Despite the market’s rally, many large investors remain cautious due to the volatility around the U.S. elections. On Tuesday, U.S. spot Bitcoin ETFs recorded net outflows of $116 million, marking the third straight day of withdrawals as investors remain on the sidelines, awaiting more clarity on election results and potential regulatory changes.

In a race as unpredictable as the markets themselves, crypto traders may find the coming days both a test of nerves and an opportunity for new peaks.