Bitcoin has demonstrated notable resilience in the aftermath of the US midterm elections, initially falling to around $75,600 before staging a sharp V-shaped recovery. By late trading on November 4, the leading cryptocurrency had reclaimed the $78,300 level and later pushed back above $80,000, erasing a significant portion of the early sell-off. The rebound came amid heightened volatility as markets priced in the implications of Democrats gaining a majority in both houses of Congress for cryptocurrency regulation.
According to commentary shared by Matthew Sigel, Bitcoin and gold have emerged as post-election outperformers, while technology stocks have struggled. The breakdown in the Bitcoin-NASDAQ correlation is seen as a signal of shifting market sentiment, reinforcing Bitcoin’s appeal as a hard asset. Expectations of increased government spending and debt issuance under a divided government, along with unchanged regulatory clarity for Bitcoin, are contributing to the narrative of continued institutional and global adoption, with Bhutan highlighted as a leading example.
The recovery spread across the altcoin market: Ether rose about 2%, the CoinDesk 80 Index gained 2.3%, and the DeFi Select Index led with a roughly 5% advance. Injective climbed 6.2%, with all seven assets in the DeFi index trading in positive territory. Futures trading volume jumped 27% in 24 hours, while open interest increased by only 3%, suggesting traders rapidly adjusted positions rather than adding large new exposure. Liquidations rose 22% to $469 million. Bitcoin’s one-week implied volatility fell from around 41% to 34%, and demand for put options eased. Still, the Fear and Greed Index remained in the “fear” zone at 37, and investors were turning their attention to the upcoming US employment report, meaning the short-term rise should not be viewed as definitive proof of a lasting trend reversal.
