Bitcoin surged 3.7% on November 5, reaching nearly $70,300 on Bitstamp, as the United States presidential election day injected volatility into the crypto market. Data from TradingView captured the dramatic rise, though the spike was followed by a quick correction to $69,500. The sudden increase in BTC price triggered a wave of short-position liquidations, with many traders surprised by the abrupt move. Popular trader Exitpump noted “sudden spot buying in unison” as a driver of the surge.
Historical Trends Fuel Optimism
Some analysts drew parallels between this election season and previous ones, highlighting a familiar pattern in Bitcoin price movement. CryptoQuant’s recent report pointed out that Bitcoin has consistently rallied after the last three U.S. presidential elections. In 2016, Bitcoin prices rose 37% from election day to year-end, and in 2020, the figure was an impressive 98%. The on-chain analytics platform suggested that Bitcoin remains “fairly valued,” hinting that further gains could follow if post-election sentiment proves positive.
BTC/USD 1-hour chart. Source: TradingView
Market Positions Anticipate Volatility
QCP Capital, a trading firm, reported that the crypto market was anticipating a 3.5% swing in Bitcoin prices during election night itself. However, it warned traders that they may underestimate risks following the election, noting that the lack of a volatility premium beyond November 8 implies that the market expects a swift result. QCP cautioned that traders might be discounting the possibility of delays or a contested outcome that could extend volatility.
Analysts See Further Bullish Potential
As the election unfolded, some analysts expressed optimism about Bitcoin’s resilience. Charles Edwards, founder of Capriole Investments, believes Bitcoin’s bull run remains intact, with strong inflows into US-based spot Bitcoin ETFs underscoring sustained investor interest. Moustache, another well-known trader, suggested Bitcoin might have already bottomed out, potentially front-running expectations for a post-election dip.
Source: Eric Balchunas
With market eyes closely following the election’s outcome, Bitcoin could see heightened activity as investors assess potential economic impacts.
