Key Points
- The total cryptocurrency market capitalization has surged to a five-month high above $2.47 trillion.
- The US Presidential election and a surge in activity around US-listed crypto exchange-traded funds (ETFs) are major factors fueling these gains.
The total market capitalization of the cryptocurrency market has reached a five-month high above $2.47 trillion.
This surge in market capitalization is due to traders buying in response to the recent US election results.
Significant Gains in the Cryptocurrency Market
In just 24 hours, the total market capitalization has increased by more than $231 billion.
Bitcoin [BTC] and most altcoins have edged higher, pushing the market cap to its highest level since June.
This increase in market cap has been accompanied by rising volatility, resulting in massive liquidations in the derivatives market.
In the past day, more than $380 million was liquidated from the cryptocurrency market, with short sellers taking the biggest hit.
US Election Results Fuel Cryptocurrency Gains
The US Presidential election has been a major factor in these gains.
Pro-crypto candidate Donald Trump won the election, promising various benefits to the US crypto community, including establishing a Bitcoin strategic reserve and firing the Chair of the US Securities and Exchange Commission (SEC) Gary Gensler.
This has led to renewed investor confidence, as shown by the crypto fear and greed index rising to 77, indicating “extreme greed”.
There has also been a surge in activity around US-listed crypto exchange-traded funds (ETFs) on election day.
Data shows that the total volumes traded for Bitcoin ETFs hit $6.07 billion, the highest level since March.
This increase in ETF inflows helps to drive demand for the underlying product.
The bullish wave across the cryptocurrency market has also positively affected crypto stocks.
On Wednesday, Coinbase (COIN) gained by 31% to $254, its highest level since July.
Other crypto stocks such as MicroStrategy and Jack Dorsey’s Block also saw significant gains.
