Bitcoin traded near $80,000 after a Democratic sweep sparked a short squeeze, with $950 million in liquidations.
On Wednesday afternoon, bitcoin traded near $80,000, climbing roughly 3% for the day. The price remained about $26,000 below its level a year earlier. Markets recovered from election-night unease following the Democratic sweep of Congress, according to data from Bitcoin Magazine Pro.
At 3:12 p.m. ET, bitcoin was worth $80,099, with a market capitalization of approximately $1.61 trillion and a 24-hour trading volume near $39.6 billion.
The session low occurred during the 10 p.m. hour on Tuesday, as election results indicated Democrats would control both houses of Congress. Bitcoin then reached its high in the 10 a.m. hour on Wednesday, a 7.3% swing over roughly 12 hours.
The price increase was driven by a short squeeze. Approximately $950 million in leveraged cryptocurrency positions were liquidated within a 24-hour period, with $560 million of that total coming from bearish bets. Bitcoin positions represented $403 million of those liquidations, 76% of which were shorts.
CryptoQuant CEO Ki Young Ju posted on X on Wednesday afternoon that $215 million in short bitcoin positions were liquidated within one hour.
JUST IN: Bitcoin surges to $81,000
— Bitcoin Magazine (@BitcoinMagazine) November 4, 2026
Analysts believe the sell-off had already run its course. CoinShares head of research James Butterfill stated that the sweep was mostly already reflected in bitcoin's price before the election, creating space for a relief rally after the uncertainty dissipated.
Lumida CEO Ram Ahluwalia had described a similar scenario in a podcast interview the day prior to the election. A Democratic sweep, he explained, would produce “a one and done washout, and that resets where asset prices are.”
Bitcoin was not the only asset to rally. The Dow Jones Industrial Average increased by approximately 1,500 points, or 3%, on Wednesday afternoon. The S&P 500 rose 1.7% and the Nasdaq Composite added 1.8%. Apple and Microsoft each hit record highs.
The biggest move came in oil. Brent crude sank over 9% to $93.91 a barrel, while West Texas Intermediate fell almost 9% to $87.59 by 12:36 p.m. ET. CNBC reported the declines after Vice President JD Vance attributed the Republican losses to the Iran war.
“The reason we lost is the war,” Vance wrote on X.
This is relevant to bitcoin's price because oil above $100 has sustained elevated inflation and kept the Federal Reserve inclined toward a rate hike in December. The U.S. dollar index dropped 0.55% to 101.32 in early trading, its lowest level since October 1.
Fund demand has not yet matched the price rise. U.S. spot bitcoin ETFs recorded $115.6 million in net outflows on Tuesday, marking a third consecutive session of withdrawals. BlackRock’s IBIT saw $95 million leave the fund. The cumulative outflows over three days amount to roughly $1.16 billion. Wednesday’s flow data will be released after the U.S. market close.
The policy environment for the industry deteriorated, rather than improved. TD Cowen’s Jaret Seiberg wrote that the sweep renders a crypto-backed CLARITY Act “impossible,” and the committees responsible for cryptocurrency oversight will shift to Democratic control in January.
On-chain analysts view the price move as a retest. Glassnode stated in its Week on Chain report that bitcoin is testing the levels it surpassed in August. The True Market Mean stands at $77,700 and the short-term holder cost basis at $75,700. Maintaining levels above those thresholds, the firm wrote, would preserve the uptrend that began in August.
The upcoming economic calendar is packed. The October jobs report is due on Friday, followed by the October CPI release on Nov. 10, and the Federal Reserve’s next rate decision on Dec. 9, as mentioned in Tuesday’s preview. Bitcoin’s current price is still about 36% below its all-time high near $126,080.
The key question going forward is whether ETF buyers will re-enter to support the price after the short positions are exhausted. At the time of writing, bitcoin was trading around $80,200.
Share to
Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
French bank Credit Mutuel Arkea confirmed a cyberattack that allowed fraudulent transfers. On-chain sleuth ZachXBT estimates the theft at over $133 million.
About two-thirds of Ripple's RLUSD stablecoin supply is on Ethereum, not the XRP Ledger, despite CEO Brad Garlinghouse's comments about complementarity.
Strategy raised $5.4 billion in stock sales in Q3 but bought only $588 million of bitcoin, with most proceeds used for STRC buybacks and preferred dividends.
Bitcoin Core developer Matt Corallo highlighted a critical Linux kernel flaw; Lightning Labs released LND updates to mitigate the exploit.