Bitcoin rebounded from an intraday low of $75,618 to surge past $81,000 for the first time since Oct. 29, climbing nearly 4% on the day and bringing its market capitalization near $1.62 trillion.
Volatile Surge After Election Night
Bitcoin experienced extreme volatility on Wednesday, reversing from a multi-week low to breach $81,000. The move came as U.S. midterm election results left Congress with fewer pro-crypto lawmakers, signaling a potentially tougher regulatory landscape for the digital asset industry.
Bitstamp data shows that hours before the rally, bitcoin fell from near $78,000 to an intraday low of $75,618 shortly before midnight. The cryptocurrency then reversed course as early returns signaled Democrats might secure control of both houses of Congress.
The initial ascent was gradual, taking nearly eight hours to gain $3,000 and reach $78,600. After consolidating above $78,200, bitcoin spiked another $3,000 in under an hour to peak at $81,105. By 12:35 p.m. EST, bitcoin was trading near $80,335, up nearly 4% on the day.
Liquidations Exceed $951 Million
The sharp swings triggered massive liquidations. Coinglass data indicates that bitcoin’s morning surge wiped out nearly $307 million in short positions over the 24-hour period ending at 1:21 p.m. Long liquidations topped $96 million, bringing total bitcoin liquidations past $403 million. Across the broader crypto market, liquidations exceeded $951 million, with short positions accounting for more than $560 million.
Political Shift Leaves Policy Future Uncertain
The U.S. midterm election results seemingly delivered a sharp wake-up call to the crypto lobby. Despite flooding the campaign trail with an unprecedented war chest via super PACs like Fairshake, the industry was unable to save several key pro-crypto Republicans from a voter backlash against the Trump administration’s second-term record.
With Democrats seizing control of both Capitol Hill chambers, political observers warn that the White House’s pro-industry agenda faces an uphill battle against newfound legislative pushback. Yet industry leaders like Strategy Executive Chairman Michael Saylor cautioned against viewing the outcome through a strictly partisan lens. He cited Florida’s election of a governor aligned with a federal bitcoin reserve and Texas electing Democratic Sen. James Talarico—who has previously voted to create one for his state—as reasons he remains optimistic.
Market observers argue that investors had already priced in a Democratic victory, shifting Wall Street’s focus back to macroeconomic factors like inflation and incoming Federal Reserve policy.
However, analysts at Bitfinex warn that fresh spot buyers have yet to back the post-election bounce, noting that recoveries since late October have been driven primarily by short covering while recent buyers continue selling into rallies. Furthermore, ongoing withdrawals from U.S. spot bitcoin ETFs have pushed aggregate 2026 net flows marginally negative, stripping away a critical source of structural demand.
Bitfinex Warns Bounce Driven by Leverage, Not Spot Buyers
According to the latest Bitfinex Alpha report, the market’s underlying support under $77,000 appears heavily leverage-driven rather than backed by spot accumulation. Aggregate bitcoin futures open interest climbed to 701,548 BTC on Nov. 3, its highest level since late September, while annualized perpetual funding rates hovered near 11%.
Bitfinex analysts caution that support below the current price band remains thin: only about 353,000 BTC was acquired between $75,000 and $77,000. A daily settlement below $75,839 could expose a liquidity pocket down between $70,000 and $75,000.
With the election in the rearview mirror, the report also asserts that macro traders are shifting their focus back to inflation data and Federal Reserve policy. It adds that options positioning surrounding the upcoming CPI release currently shows more than twice as many puts as calls, signaling sustained institutional demand for downside protection as the market tests whether genuine spot demand will return.
