Bitcoin price downside reached a seven-week-low of $75,618 as 24-hour crypto long liquidations neared $300 million.
Bitcoin (BTC) sought to erase 3% overnight losses on Wednesday as crypto markets digested the Democratic sweep of the midterm elections.
Data from TradingView showed BTC/USD falling into Tuesday’s daily close as election results came in, with Democrats going on to win control of both the House and Senate. The pair dropped to a low of $75,618 on Bitstamp, a level last seen on Sept. 16, before rebounding as high as $78,039 over the next three hours.
Data from CoinGlass showed the price dip liquidating late BTC long positions below $76,000, while a wall of asks kept upside contained below $78,000. Total crypto long liquidations over the past 24 hours stood at $288 million.
In comments sent to Cointelegraph, Kelly Ye, head of research at institutional digital asset trading platform Talos, said that markets had largely priced in the election outcome.
“Bitcoin moved about 1.7% after the polls closed, close to the roughly 1.8% options had priced, and there was no major leverage flush. The election was the main event, but markets had largely prepared for it,” she said.
US stock futures showed similar moves, initially falling before recouping some losses. S&P 500 and Nasdaq 100 futures were both down by about 0.3% at the time of writing.
Late Tuesday, Anthony Saglimbene, chief market strategist at financial services company Ameriprise Financial, told CNBC that concerns over data-center and broader AI capital expenditure were producing an adverse market reaction to the Democratic gains.
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