Bitcoin rebounded above $80,000 after falling to a seven-week low of $75,600, according to a market watch published by CryptoPotato. The recovery came after the Democratic sweep in the midterms initially drove the asset lower.
The largest cryptocurrency had already endured a sharp decline at the end of the previous business week following what the report described as the largest hack in the crypto industry in USD terms. BTC traded near $81,000 before falling to $76,400 and then $76,100. Bulls stepped in after that move, helping the asset recover to around $78,000 over the weekend.
Midterm Volatility and a Short Squeeze
Monday began with a minor rally to $79,000, where bears rejected the advance and pushed bitcoin back to $76,400. As the midterms approached, the asset regained traction and tapped $78,000 again. The Democratic victory then sent BTC tumbling to $75,600, its lowest level in seven weeks.
Once the uncertainty faded, bitcoin rallied to $78,000 almost immediately. It moved further during US trading hours and reached $81,000, a move that liquidated $380 million in shorts within an hour. BTC was halted at that level but continued to trade above $80,000 as of press time.
Bitcoin's market capitalization rebounded to $1.610 trillion on CMC, while its dominance over altcoins was above 60% again.
TRUMP Extends Losses
The official meme coin linked to the US President was among the weakest performers, falling to a three-month low. TRUMP was down another 15% on a 24-hour scale at the time of the report.
Ethereum rose past $2,400 after dipping to $2,100 following the midterms, while XRP jumped to $1.32 as of press time. SOL remained under $100 despite a 3.7% daily increase. LINK, ADA, LTC, CRO, BCH, CC, and TAO were also well in the green.
In contrast, HYPE slumped by nearly 4% to $83, while TRX, XMR, and RAIN were slightly in the red. VVV was the other major loser of the day, while PIEVERSE posted a double-digit gain.
The total crypto market cap increased by 2.3% in a day to $2.690 trillion on CMC.
