Bitcoin climbed back above $80,000 by Wednesday morning, erasing losses triggered by the previous evening’s election results, which saw Democrats gain control of both chambers of Congress. At 11:10 a.m. ET, bitcoin traded at approximately $80,500, marking a 3.8% increase within the past 24 hours, according to CoinGecko data.
Sharp price recovery follows election volatility
Bitcoin experienced significant swings in the hours after polls closed. On Coinbase, its price dropped to a low of $75,600 during the 10 p.m. ET hour on Tuesday. This figure reflected a 2.8% decline from where it had stood at 6 p.m. ET. However, by 10 a.m. ET Wednesday, bitcoin touched $81,130, amounting to a 7.3% surge from its overnight low.
Ether also rallied, gaining 6.3% over the past day to trade near $2,437, according to the same data provider. The rebound echoed investor sentiment rapidly shifting in response to the election outcome and the evolving political landscape.
Franklin Crypto Head Christopher Perkins commented on Unchained’s Bits + Bips that post-midterm periods have historically provided a positive environment for markets, describing them as “very, very constructive for all markets.” Lumida CEO Ram Ahluwalia, speaking on the same program, suggested that a Democratic sweep could set the stage for a quick reset, stating that such a scenario would result in a “one and done washout” that recalibrates asset prices.
Leverage liquidations accelerate as shorts take the brunt
Volatility triggered substantial liquidations across leveraged crypto positions. CoinGlass reported that $950 million in total positions were closed out over the 24-hour period. Short positions accounted for $560 million, representing nearly 59% of all liquidations, while long positions comprised $391 million.
The impact intensified during shorter time frames. In the 12 hours leading up to the rebound, short positions made up $514 million of the $670 million in liquidations. Over a span of just four hours, $397 million in shorts were liquidated out of a total $537 million, underscoring the sharp uptick in forced closures as prices rallied.
Bitcoin contracts were hit hardest, making up $403 million of the 24-hour liquidation tally, with shorts responsible for 76% of those losses. Ether accounted for $238 million in forced liquidations, with 55.5% of those positions betting against the asset’s price. The largest single liquidation involved a $38 million long position on the ETH-USDT trading pair at HTX.
With bitcoin and ether reacting swiftly to dramatic shifts in sentiment, investors have faced heavy losses stemming from concentrated leveraged trades on both sides of the market.
For those tracking these sudden and volatile liquidation spikes tied to election news and price reversals in $BTC and $ETH, real-time monitoring has become essential. CryptoAppsy provides instant alerts for liquidation levels and rapid price swings, allowing traders to quickly respond and analyze conditions as they emerge.
Election results reshape crypto policy landscape
Beyond the immediate market consequences, the outcome of Tuesday’s vote signals longer-term implications for crypto regulation. Committees responsible for overseeing the digital asset industry will shift to Democratic leadership when the new Congress convenes in January.
Democratic senators previously blocked the CLARITY Act, which sought to establish a clearer market structure for crypto, during the last session. The prospects for regulatory developments may change as Democrats prepare to take charge of relevant committees next year.
Franklin Crypto Head Christopher Perkins described the post-election environment as highly constructive for all markets, while Lumida CEO Ram Ahluwalia indicated a Democrat-controlled Congress could result in a swift correction that sets a new baseline for asset prices.
