Bitcoin Recovers to $78,000 After U.S. Elections
With election uncertainty easing, Bitcoin is recovering quickly, while BTC options trading surged after the U.S. result.
Key Takeaways
- Bitcoin recovered to nearly $78,000 after uncertainty around the U.S. midterm elections faded.
- The price briefly dipped below $76,000 earlier, but was 0.5% higher later in the day.
- About $660 million in BTC options traded on election day, more than twice as much as the day before.
Bitcoin has erased Wednesday's early losses and is moving back toward $78,000 (€69,800), after uncertainty around the U.S. midterm elections faded. The price briefly slipped below $76,000 (€68,000) earlier in the day, but then quickly recovered. At the time of writing, Bitcoin was up 0.5%.
Political Calm Returns
The first drop came alongside reports that Democrats would win both chambers of Congress, which is a setback for pro-crypto President Donald Trump. According to TDX Strategies founder Dick Lo, political uncertainty then mostly left the market. He said a Democratic majority in Congress is usually seen as less favorable for pro-crypto legislation, while divided government makes major policy changes less likely.
There was also a lot of movement in the derivatives market. Nicolas Quatravaux, head of EMEA at Paradigm, said the result itself was not really surprising and that the market had already been pricing in a Democratic win. In his view, trading was mostly about uncertainty disappearing. That fits with the broader trading leading up to the vote, where short positions and elections were already front and center.
Options Trading Surges
Quatravaux said about $660 million (€590 million) in BTC options traded in blocks on election day, more than twice as much as the day before. Of that, about $420 million (€376 million) was bought in calls and around $105 million (€93.9 million) was sold. A call is a bet on a higher price, while a put offers protection against declines.
According to him, traders bought about $230 million (€206 million) in bitcoin calls to position for a rebound after the election result. Around the local low, others sold options to lock in profits on the higher volatility. That fits a market where tension around the result is easing, but traders are still reacting quickly to new political news.
Why This Matters for Europe
For European crypto investors, this move shows how strongly U.S. politics still affects Bitcoin. The election result could also shape the tone of the debate over regulation in the U.S., which matters for international firms active in crypto. At the same time, the mix of higher options volume and a quick rebound suggests the market is still reacting sharply to macro and policy news.