Bitcoin Magazine
Bitcoin Price Holds Near $80,000 as Democratic Sweep Sparks Short Squeeze
Bitcoin price traded near $80,000 on Wednesday afternoon, up about 3% on the day and roughly $26,000 below its price one year ago, as markets shook off election-night jitters over the Democratic sweep of Congress, according to Bitcoin Magazine Pro data.
Bitcoin changed hands at $80,099 at 3:12 p.m. ET, with a market cap of about $1.61 trillion and roughly $39.6 billion in trading volume over the past 24 hours.
The low came in the 10 p.m. ET hour on Tuesday, as results showed Democrats taking both chambers. The high came in the 10 a.m. hour on Wednesday. That is a swing of about 7.3% from bottom to top in roughly 12 hours.
The climb was a short squeeze. About $950 million in leveraged crypto positions were liquidated over 24 hours, and bets against prices made up $560 million of that. Bitcoin positions accounted for $403 million of the total, 76% of it shorts.
CryptoQuant CEO Ki Young Ju wrote on X Wednesday afternoon that $215 million in bitcoin shorts were liquidated in a single hour.
The view among analysts is that the sell-off had already done its work. CoinShares head of research James Butterfill said the sweep was largely priced into bitcoin before the vote, leaving room for a relief rally once the uncertainty cleared.
Lumida CEO Ram Ahluwalia had laid out the same path in a podcast interview the day before the election.
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