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Home»ALTCOIN NEWS»Why is the cryptocurrency market rising today?
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Why is the cryptocurrency market rising today?

By Crypto FlexsJuly 14, 20243 Mins Read
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Why is the cryptocurrency market rising today?
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Cryptocurrency markets rebounded over the weekend, with the intraday gains being fueled by the shocking assassination attempt on former President Donald Trump.

Cryptocurrency Demand Surges Amid Trump’s Re-election Challenge

The cryptocurrency market rose 2.88% in value in the hours after the shooting at Trump’s Pennsylvania rally, with the former president surviving an assassination attempt. Bitcoin (BTC) also surpassed $60,000 for the first time in 10 days.

What’s interesting is that Donald Trump’s biggest meme coin, MAGA (TRUMP), also surged more than 30% following the assassination attempt.

TOTAL Crypto Market Capitalization Hourly Performance Chart. Source: TradingView

This upward movement suggests that many cryptocurrency traders are betting on a Trump victory in the upcoming US presidential election in November, an outcome that could lead to more favorable cryptocurrency regulations than the current strict policies of the Joe Biden administration.

“Based on bitcoin’s reaction so far, it looks like the market is starting to price in a full-scale Trump victory,” said Will Clemente, founder of cryptocurrency research firm Reflexivity Research.

Cryptocurrency derivatives market is bullish

Open interest (OI) for all the top cryptocurrencies has increased over the past 24 hours, especially after the Trump news. Additionally, most of these assets have positive funding rates, suggesting that long traders are paying fees to short trades to maintain their bullish positions.

Top 10 Crypto Assets and Derivatives Data. Source: Coinglass

A rising OI and a positive funding ratio suggest that most traders have strong bullish sentiment. They are willing to pay a premium to hold long positions, reflecting their confidence in the market’s uptrend.

Related: The German Government’s BTC Balance Is Now Zero, What Will Happen to the Bitcoin Price?

Additionally, the rise in the cryptocurrency markets over the past 24 hours coincides with relatively more liquidations by short traders than long traders. As of July 14, the market saw $65.41 million worth of short liquidations, while long liquidations amounted to $22.93 million.

Crypto liquidation heatmap. Source: Coinglass

When a short position is liquidated, the trader must buy the asset back to cover his position. This buying pressure increases demand for the asset, driving up the price.

Descending Channel Bounce

From a technical perspective, today’s cryptocurrency market rally is part of a consolidation trend within a prevailing downward channel pattern.

Total Cryptocurrency Market Cap. Source: TradingView

The crypto market has tested the lower trendline of the channel as support for the fourth time since March, a move that preceded the recent sharp rebound. As of July, the market is reiterating the fractal in a noticeable way, and is eyeing the 50-day exponential moving average (50-day EMA; red wave) at around $2.23 trillion as an immediate upside target.

A decisive close above the 50-day EMA could see the market rally towards the upper trendline of the channel, similar to the recent bounce, which coincides with the $2.42 trillion level that acted as support during the May-June 2024 session.

This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.