Bitcoin bounces from 7-week low under $76K as Democrats sweep Congress

Bitcoin's price bottomed out at $75,618, marking a seven-week low, as the cryptocurrency market digested the results of the mid-term elections where Democrats secured control of both the House and Senate. Following the election results, Bitcoin experienced a temporary dip, falling to $75,618 on Bitstamp, a price last seen on September 16.

The price then rebounded and reached a high of $78,039 within three hours. Throughout the day, Bitcoin's price dropped by $288 million in long liquidations, with significant support found at $78,000. Research from Talos indicated that Bitcoin moved up 1.7% after the polls closed, closely aligning with the 1.8% prices predicted by options.

Analysts noted that the Democratic sweep of Congress largely prepared the markets for the outcome, with no major leverage flush. US stock futures, initially falling, later recovered some losses, with the S&P 500 and Nasdaq 100 futures both down by approximately 0.3%. Concerns over potential data-center and AI capital expenditure fluctuations, potentially impacted by Democratic governance, contributed to the market's response to the election results.

US President Donald Trump, who previously threatened to veto Democratic policy initiatives, expressed a more cooperative attitude, stating, "I think we'll work with the Democrats, and we'll get along very well with them." Bitcoin's price drop coincided with its 50-week simple moving average (SMA), a key support level that had held since mid-September. If Bitcoin fails to hold this level, analysts warn that it may lead to a deeper correction.