Bitcoin climbed above $80,500 at the start of Wednesday’s US trading session, rebounding from a seven-week low as stocks and other risk assets rose after Democrats made gains in the midterm elections. BTC was up more than 4%, according to TradingView data cited in the report.
US stock futures also recovered after falling overnight. S&P 500 futures touched 7,490 points, their lowest level since July 31, before rising to 7,690. Trading resource The Kobeissi Letter described the initial decline following the election results as a “textbook bear trap.”
James Butterfill, head of research at CoinShares, said the easing of election uncertainty could support a broader Bitcoin relief rally. He added that real yields, dollar liquidity and exchange-traded product flows remain more influential for Bitcoin than the election itself.
Oil prices fell as markets responded to hopes that the Iran conflict could ease. WTI crude dropped below $93 a barrel, its lowest level since mid-October, and was down as much as 11.9% for the week. Brent crude approached $100 a barrel. Butterfill said lower oil prices could ease inflationary pressure and moderate expectations for interest-rate increases.
Sources: Cointelegraph.