Bitcoin traded near $80,000 on Wednesday afternoon, recovering from an overnight low of $75,600 as markets moved past uncertainty over Democrats taking both chambers of Congress. Bitcoin was at $80,099 at 3:12 p.m. ET, up about 3% for the day, according to Bitcoin Magazine Pro data. Its market capitalization was around $1.61 trillion, with approximately $39.6 billion in 24-hour trading volume.

The price rose about 7.3% from its low to its Wednesday morning high in roughly 12 hours. The rebound was accompanied by liquidations of about $950 million in leveraged crypto positions over 24 hours, including $560 million in bets against rising prices. Bitcoin positions made up $403 million of the total; 76% of those were shorts. CryptoQuant CEO Ki Young Ju said on X that $215 million in bitcoin shorts were liquidated in a single hour.

Analysts cited in the report said the election-related sell-off may have largely occurred before the vote. CoinShares research head James Butterfill said the outcome was mostly priced in, leaving room for a relief rally once uncertainty eased. Lumida CEO Ram Ahluwalia had also described a potential “one and done washout” in a podcast interview before the election.

The move coincided with gains in U.S. stocks. The Dow Jones Industrial Average was up about 3% on Wednesday afternoon, while the S&P 500 gained 1.7% and the Nasdaq Composite rose 1.8%. Apple and Microsoft reached record highs.

Oil prices fell more than 9% for Brent crude, to $93.91 a barrel, and nearly 9% for West Texas Intermediate, to $87.59, by 12:36 p.m. ET, CNBC reported. Vice President JD Vance attributed Republican losses to the Iran war, writing on X, “The reason we lost is the war.” The U.S. dollar index was down 0.55% at 101.32 in early trading, its lowest level since Oct. 1.

Fund demand has yet to match bitcoin’s price rebound. U.S. spot bitcoin ETFs recorded $115.6 million in outflows on Tuesday, their third consecutive session of withdrawals. BlackRock’s IBIT accounted for $95 million, bringing the three-day total to about $1.16 billion. Wednesday’s fund flows were due to be reported after the U.S. market close.

The political outcome also raised questions about crypto legislation. TD Cowen’s Jaret Seiberg said the Democratic sweep makes a crypto-backed CLARITY Act “impossible” and that committees overseeing crypto will pass to Democrats in January.

Glassnode described bitcoin’s price action as a test of levels it broke above in August. The firm put the True Market Mean at $77,700 and the short-term holder cost basis at $75,700, saying that holding above those levels would keep the August uptrend intact. Bitcoin remained about 36% below its all-time high near $126,080. Upcoming dates highlighted in the report include Friday’s October jobs report, October CPI on Nov. 10 and the Federal Reserve’s next decision on Dec. 9. The report said bitcoin was near $80,200 at the time of writing.

Sources: Bitcoin Magazine.