Bitcoin dropped just below $76,000 in the early hours of Wednesday, November 4, as US midterm returns pointed to a Democratic sweep of Congress, then staged a V-shaped recovery to about $78,300. CoinDesk put the overnight low near $75,700, while Crypto Insiders counted a rebound of more than 3% from that low by the European morning.
Traders largely attributed the bounce to the end of political uncertainty rather than to the result itself. “Bitcoin dropped initially in response to the Democratic sweep of the midterm elections, but has since recovered as a clear outcome resolves political uncertainty,” said Dick Lo, founder of TDX Strategies. Nicolas Quatravaux of Paradigm noted that Polymarket had priced a Democratic win above 75% for some time, and that about $660 million in notional bitcoin options blocks traded on election day, more than double the previous day.
Markus Thielen of 10x Research called bitcoin oversold and named $82,000 as the next target, while Lacie Zhang of Bitget Wallet said the trend remains consolidative below resistance at $80,000 to $82,000. Flows remain a headwind: US spot bitcoin ETFs saw $515 million in October outflows and a similar amount in the first two November sessions, according to SoSoValue figures cited by CoinDesk.
Later on Wednesday, traders face the ADP employment report and the ISM services index, followed by Friday’s official US jobs report.
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Sources:
CoinDesk: Bitcoin surges to $78,300 in V-shaped comeback as midterm election uncertainty fades
CoinDesk: Bitcoin briefly sinks to $75,700 as bets on a Democratic sweep rattle markets
Crypto Insiders: Bitcoin veert snel op na scherpe nachtelijke duik
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