Bitcoin soared past $71,000 on Tuesday, marking a significant 5% gain within 24 hours and crossing a critical resistance level. This rally, spurred by increased buying activity among major traders or “whales,” comes just a week before the U.S. elections—a potential catalyst that many in the crypto community believe could benefit Bitcoin regardless of the political outcome.

Short Liquidations Skyrocket

Bitcoin Price Chart | Source: CoinMarketCap

As Bitcoin breached the $70,000 mark, many traders betting on a price drop faced substantial losses. A staggering $176 million in short positions were liquidated, with Bitcoin and Ethereum short traders suffering losses of $88.89 million and $39.73 million, respectively. This wave of liquidations highlights the volatile market environment as traders pivot amid heightened demand.

Strong Buying Demand from ETFs and Whales

Large-scale buying interest continues to come from Bitcoin exchange-traded funds (ETFs), which have seen inflows of around 47,000 BTC over the last two weeks. Much of this activity has been observed on Binance, particularly during Asian trading hours, suggesting a robust demand from high-volume players looking to capitalise on potential future gains.

Following Bitcoin’s lead, other cryptocurrencies experienced notable gains. Dogecoin jumped 15%, while Shiba Inu saw an 8% increase. Ethereum gained nearly 5%, with Cardano, Solana, and BNB Chain all climbing by over 3%. The broader market optimism underscores the anticipation around the U.S. election and the overall positive sentiment surrounding crypto assets.

Traders Eyeing $75,000 Target

With the November elections on the horizon, options traders are focusing on a potential $75,000 price target for Bitcoin. As traders weigh the election’s impact on traditional markets, many see a favourable environment for Bitcoin’s growth regardless of the outcome, cementing optimism that new highs may be in sight.