Crypto · $BTC/USD
Bitcoin Reverses Election-Night Dip Below $76,000 and Climbs Toward $78,000 as Political Uncertainty Fades
Image: PriismaDesign via Pixabay
Options traders bought calls into the midterms, but ETF outflows and resistance near $80,000 still cap the rebound.
By Noris Ortiz ·
Bitcoin dropped just below $76,000 early Wednesday as results showed Democrats winning control of both chambers of Congress, then reversed higher within hours. CoinDesk reported that the largest cryptocurrency was trading near $78,300, about 1% higher on the day, at 3:37 a.m. ET, erasing its overnight losses in what the outlet called a V-shaped recovery [1].
The move tracked a wider pattern across markets. CoinDesk said Nasdaq futures cut an early decline of more than 2% to roughly 0.3% as the election outcome became clear [1]. Reuters reported that US stock index futures were also steady by early Wednesday after earlier losses, with Democrats taking the Senate and the House [2]. Australia's ABC News, in its markets coverage, put bitcoin at $77,877 in the afternoon in Sydney, up 0.1% on the day [3].
The result itself was widely anticipated, according to CoinDesk, which noted that the prediction market Polymarket had shown a Democratic win at above 75% for some time. Nicolas Quatravaux of Paradigm told the outlet that "the result itself wasn't really a surprise." In that reading, the rebound reflects the removal of uncertainty rather than any enthusiasm about the outcome [1].
Derivatives data pointed to traders positioning for volatility. CoinDesk said bitcoin options block trades on Election Day reached about $660 million in notional value, more than double the prior day. Calls bought, at about $420 million, far outpaced calls sold, at about $105 million. The outlet also noted that daily stochastic indicators showed bitcoin in oversold territory after the sharp drop [1].
Policy is a more complicated factor. CoinDesk said a Democratic Congress is generally seen as less favorable for pro-crypto legislation, although divided government makes dramatic shifts less likely, and the president could still act through executive orders [1]. That view fits with the AP's description of the midterms as a new era of congressional resistance for President Donald Trump, and its note that markets typically prefer divided control in Washington [4].
The recovery faces headwinds. According to data from SoSoValue cited by CoinDesk, US spot bitcoin exchange-traded funds recorded about $515 million of outflows in October and roughly the same amount over the first two trading days of November. A negative reading on the Coinbase premium indicator also signaled soft US demand. Analysts quoted by CoinDesk said net ETF inflows would need to turn positive for a lasting advance, and they identified resistance in the $80,000 to $82,000 range. An analyst at 10x Research cited $82,000 as the next target, while another said a more durable recovery would require bitcoin to reclaim that resistance zone [1].
Ether also rose, with CoinDesk's page ticker showing it near $2,332, up about 3%, though the article did not analyze the move [1].
What to watch next: whether bitcoin can hold above $78,000 while ETF redemptions continue, the daily flow figures from SoSoValue, the reaction in US equity markets at the 9:30 a.m. ET open, and whether options positioning stays tilted toward calls once the election-related volatility fades.
Sources:
[1] CoinDesk, "Bitcoin surges to $78,300 in V-shaped comeback as midterm election uncertainty fades", November 4, 2026. https://www.coindesk.com/markets/2026/11/04/bitcoin-knocks-on-usd78-000-in-v-shaped-comeback-as-midterm-uncertainty-fades
[2] Reuters, "US stock index futures steady as Democrats seize Congress" (via Yahoo Finance), November 4, 2026. https://finance.yahoo.com/markets/stocks/articles/us-stock-index-futures-steady-083456013.html
[3] ABC News (Australia), "ASX lower as traders await outcome of US midterms - as it happened", November 4, 2026. https://abc.net.au/news/2026-11-04/asx-markets-business-live-news-nov-4/107343406
[4] Associated Press, "Asian shares and US futures are mixed as Democrats gain majorities in both the US House and Senate" (via KSAT), November 4, 2026. https://www.ksat.com/business/2026/11/04/asian-shares-and-us-futures-are-mixed-as-democrats-gain-majorities-in-both-the-us-house-and-senate/
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.