Bitcoin Retakes $80,000 as Oil Tumbles to Three-Week Low

After Democrats secured control of Congress, Bitcoin climbed back above $80,000 on Wednesday while US crude oil dropped to a three-week low.

Data from CoinGecko showed BTC trading near $80,700, roughly 4.4% higher in 24 hours. The US oil benchmark West Texas Intermediate (WTI) slipped to about $93.54, roughly 12% below last Friday’s $106.2 peak, reducing fuel prices for American drivers and businesses.

What Drove Oil’s Sharp Drop After the Midterms?

An Associated Press tally showed Democrats holding 54 Senate seats and 228 House seats on Wednesday morning.

Al-Monitor reported that investors are hoping a Democratic Congress will encourage greater US restraint in the eight-month war with Iran, a conflict that has pushed gasoline prices up and helped drive US inflation.

Reuters reported that President Donald Trump told the Financial Times on Tuesday the US had no immediate plans to attack Iran. Qatar has also increased its mediation role.

A summary by LWS Financial Research cited a JPMorgan estimate that the global oil market had a surplus of 1.4 million barrels per day in October. JPMorgan also estimates demand has dropped by about 3.3 million barrels per day since the war began.

What Might Reverse Oil’s Drop and Bitcoin’s Climb?

Reuters heard from a senior Iranian official that the two sides are still far from a deal, and US forces attacked missile sites on Iran’s Qeshm Island this week.

“[T]he underlying supply disruption risks around the Strait of Hormuz have not disappeared.”

Priyanka Sachdeva, head of market insights at Phillip Nova, made that comment to Reuters. On X, market commentator JustDario went further with the unsupported view that the selloff may act as a buffer before new large-scale attacks on Iran.

Bitcoin has not always followed oil. Monday’s peace-talk reports sent crude lower, and gold and silver climbed while Bitcoin lagged. On Wednesday, BeInCrypto reported, the coin fell to about $75,700 before traders placed $420 million in bullish bets ahead of the move past $80,000.

The 68 House races that remain uncalled and Qatar’s negotiations are next, offering two tests for crude and for the Bitcoin price outlook.