Bitcoin (BTC) crossed the $70,000 threshold on November 5 as US presidential polls showed Donald Trump pulling ahead in early counts. Crypto markets are closely watching the election due to Trump’s vocal support for cryptocurrency regulation reform. As traders anticipate friendlier policies, BTC has seen renewed interest, briefly pushing its value above $70,000 before retreating slightly. With heightened market activity, many speculate that Bitcoin could target higher resistance levels if Trump’s lead solidifies.
Market analysts see Bitcoin’s breakthrough as a reaction to increased investor confidence, with one expert noting, “Bitcoin’s rally shows the potential for high-value assets to attract capital when political policies appear favorable to innovation.”
Dogecoin Dominates Altcoin Rally with 11% Surge
Dogecoin (DOGE) emerged as the day’s standout performer among the top 10 cryptocurrencies, climbing 11% in 24 hours. This surge followed Elon Musk’s latest endorsement on the Joe Rogan podcast, where he reiterated his belief in DOGE’s potential as a transactional currency. Traders also leaned into the coin’s upward momentum by placing $128 million in leveraged long positions, reflecting high confidence in its continued climb.
The enthusiasm around DOGE highlights a trend of renewed optimism across the altcoin market. In fact, total altcoin market capitalization (TOTAL3) surged by $22 billion, signaling a bullish sentiment returning to the crypto sector.
Altcoin Markets Buoyed by Political Climate and Fed Anticipation
While Bitcoin and Dogecoin attracted the spotlight, the broader altcoin market also benefited from positive sentiment. Alvin Kan, COO of Bitget Wallet, suggested that the Federal Reserve’s upcoming interest rate announcement on November 7 could further drive volatility and investor interest in altcoins. A rate cut may reduce borrowing costs and increase liquidity, potentially spurring gains for smaller-cap altcoins closely linked to Bitcoin’s movements.
“Lower rates often encourage risk-on sentiment, benefiting altcoins that ride Bitcoin’s wave,” explained Kan. “If the Fed cuts rates, we could see altcoins benefit, though volatility is expected as traders react quickly.”
Also read : Ethereum Dips 14% – Is Now The Time To Buy Before A $3,500 Rally?
Prediction Markets Bet on a Trump Victory
Crypto prediction platforms like Polymarket have seen an influx of wagers favoring a Trump win. Bets in favor of Trump spiked to $3.2 billion by November 5, suggesting that traders are aligning with a “crypto-friendly” vision under his potential leadership. This development appears to mirror sentiment in crypto markets, with investors embracing riskier assets amidst expectations of regulatory support.
The odds for a Trump victory increased from 56.4% to 61.1% over 24 hours, with new crypto bets pointing to heightened conviction among traders in Trump’s candidacy.
