Bitcoin experienced a substantial rally, posting a massive 9% increase in a single day after the announcement that Donald Trump had won the U.S. presidential election. The crypto market surged in response, with certain altcoins seeing gains as high as 60%—notably, GRASS was one of the top performers.
The focal point of this explosive move was the surge in trading volume. Bitcoin experienced significant short liquidations totaling $110 million just over the $75,000 mark, with total short liquidations across all exchanges reaching $426 million. This short squeeze propelled BTC to a new all-time high of $76,481 on Bitstamp, supported by a TBO Breakout signal on the daily chart. However, the TBO Slow line remained flat, indicating that consistent bullish momentum will be necessary for the trend to strengthen.
Despite the strong move, some pullback should be expected as BTC consolidates its recent gains. This initial surge aligns with Trump’s proposed crypto policies, which include potential regulatory clarity and support for the industry. Key elements like the removal of SEC Chair Gary Gensler, a proposed Bitcoin reserve, and promoting Bitcoin mining have reignited market optimism.
Bitcoin Dominance and Altcoin Market Dynamics
Bitcoin’s dominance decreased by 1.18% following its sharp rise, signaling a brief window for altcoins to react. The weekly BTC.D chart, however, remains firmly bullish, and a reversal isn’t anticipated until BTC.D retreats into the weekly cloud.
Stablecoin dominance reflected the market's movement by dropping over 7% during the rally, a notable decline that aligns with bullish crypto sentiment. Although the TBO Breakdown signal is evident, it’s worth noting that this could lead to a short-term move back to the TBO Fast line before resuming its downtrend.
Altcoin Signals and Broader Market Cap Insights
The dominance of other cryptocurrencies (OTHERS.D) finally broke its oversold RSI streak, indicating a potential short-term bounce. Yet, the overall trend remains down, and caution is warranted until stronger reversal signals emerge.
ETH dominance (ETH.D) has been signaling a turnaround as well, fueled by expectations that Trump’s administration will deliver regulatory clarity. ETH has been heavily oversold for months and is now showing signs of recovery.
The TOTAL crypto market cap surged by 9% and is in the process of printing another TBO Breakout, backed by strong OBV readings and RSI nearing a close above 70. However, OTHERS market cap remains heavily oversold despite signs of improvement.
BVOL7D, an indicator tracking Bitcoin’s volatility, surged 19% and moved above the daily TBO Cloud, with overbought RSI suggesting that BTC will continue to experience significant price swings over the next week. This could mean continued pressure on altcoins as Bitcoin takes the spotlight.
TradFi Observations: A Surprising Rally
In traditional finance, the DXY broke out above long-term resistance, driven by expectations that Trump’s pro-economy stance will strengthen the U.S. dollar. This development, while surprising, was echoed by all major indices as they posted gains. The S&P 500, Dow Jones Industrial Average, and Nasdaq all achieved new all-time highs, with the Nasdaq even printing a TBO Breakout.
The VIX, a key measure of market volatility, gapped down significantly and fell to 16, signaling reduced market fears.
Gold, however, experienced a sharp 3.09% decline, moving into the daily TBO Cloud and indicating a period of consolidation. This move aligns with Trump’s pro-U.S. economic stance, which temporarily reduces gold’s appeal as a safe haven.
Conclusion
Bitcoin’s explosive rally and the subsequent boost to the broader crypto market underline the renewed optimism following Trump’s election win and his pro-crypto policy proposals. While Bitcoin and major indices surge, altcoins show early signs of bouncing back but remain under pressure. Traders should stay vigilant as the market adjusts to this new landscape, and with BVOL7D signaling heightened volatility, all eyes will remain on Bitcoin and its next moves.
