Bitcoin Tops $81,000 After Midterm Dip, Squeezing Short Sellers

Bitcoin rose over 4% to $80,500 on Wednesday, recovering from a seven-week low, as U.S. equities rebounded following the midterm elections. Democrats' strong performance reshaped Washington's balance of power. Oil prices fell sharply, with WTI crude dropping below $93. Riot Platforms (RIOT) surged after reporting better-than-expected Q3 results and announcing a major AI lab lease deal.

Bitcoin rose 4.5% to $80,600, while Ethereum gained 7% to $2,435, as a weaker dollar and Democratic midterm wins boosted risk assets. The rally followed a month-long crypto market decline, with Bitcoin's surge potentially forcing short sellers to cover positions. Key levels to watch include $80,000 for support and $82,000-$83,000 for further gains. Institutional inflows remain weak, and political uncertainty persists.

Bitcoin rose to $80,500 on Wednesday after initially dropping below $76,000 due to Democratic midterm election wins. It recovered alongside US stock indexes, with the Nasdaq and S&P 500 gaining 2.2% and 1.8%, respectively. Options traders bet on a rebound, and Treasury yields eased as rate hike expectations faded. Bitcoin is still down 41% from its October 2025 high, and ETFs saw outflows.

Bitcoin fell below $76,000 post-midterms but recovered to $80,500, up 4% in 24 hours. Zcash, Ether, and Chainlink also saw gains. Analysts attribute the recovery to reduced political uncertainty. Democrats' control of Congress may pose challenges for crypto legislation, but market impact is uncertain.

Bitcoin surged above $80,000, with short liquidations totaling $378M in one hour, according to CoinGlass. Ethereum also gained 6.1% in 24 hours. U.S. spot Bitcoin ETFs saw $1.16B in outflows before the rally, with BlackRock's IBIT accounting for $405.3M on Nov. 2.

Bitcoin reached $80,000, causing over $415 million in liquidations across the crypto market, with 80% from short positions, according to Cointelegraph.