In this article5 sections
Bitcoin fell to $75,618 on Wednesday, its lowest level in seven weeks, as results showed Democrats winning control of both chambers of Congress in the US midterm elections, Cointelegraph reported.
The drop on Bitstamp, last seen on Sept. 16, was followed by a rebound to $78,039 within roughly three hours, according to TradingView data cited by the outlet. CoinGlass figures put total crypto long liquidations over 24 hours at about $288 million.
Also read: Bitcoin Slips Below $80,000 as Fed Meeting and ETF Outflows Weigh
Key facts
- BTC/USD fell to $75,618 before rebounding to $78,039, with Cointelegraph attributing the figures to TradingView data.
- Democrats won the House and Senate in the midterms, a result markets had largely anticipated.
- Crypto long liquidations over 24 hours reached $288 million, per CoinGlass.
- S&P 500 futures were down about 0.3% on Wednesday, with Nasdaq 100 futures at a similar level.
- Bitcoin’s 50-week simple moving average stood at $75,733.
How the market read the result
Kelly Ye, head of research at institutional digital asset trading platform Talos, told Cointelegraph that the outcome was not a surprise. She said bitcoin moved about 1.7% after polls closed, close to the roughly 1.8% that options had priced, and that there was no major leverage flush.
CNBC reported that investors were not positioned for a sweep even as prediction markets leaned toward one. Tobin Marcus, head of U.S. policy and politics at Wolfe Research, told the network that a survey of more than 100 institutional investors showed skepticism about whether the outcome would be as favorable to Democrats as polling suggested. JPMorgan expected a blue wave to knock about half a percent off the S&P 500 on Wednesday.
The two reports frame the same session differently: Cointelegraph emphasizes how little bitcoin moved relative to what was already priced, while CNBC focuses on the potential for the result to pressure specific sectors.
Support levels and the AI trade
Keith Alan, co-founder of Material Indicators, identified the 50-week moving average as a line bitcoin bulls need to hold, arguing that a failure would open the door to a deeper correction ahead. Crypto trader and analyst Rekt Capital flagged resistance on the three-day chart, saying newly formed lower highs could guide price back toward roughly $75.5k over time.
In equities, Anthony Saglimbene, chief market strategist at Ameriprise Financial, told CNBC that concerns about data-center and broader AI capital expenditure were behind the adverse reaction to Democratic gains. CNBC noted that a strong Democratic showing could pressure AI-linked stocks and defense shares while lifting healthcare names.
Why it matters
The session showed a political shock moving crypto and equities in the same direction, with bitcoin’s drop tied to the election result rather than to a sector-specific event. For traders, the 50-week moving average near $75.7k now reads as a dividing line between a routine pullback and a deeper decline. The positioning data also suggests the market’s main risk was not the result itself but how lightly investors had prepared for it.
What to watch
Whether BTC holds the 50-week moving average around $75,733 in the days ahead will be the clearest signal for near-term direction, according to the analysts cited by Cointelegraph. Market participants will also watch data-center and AI capital-spending commentary, which CNBC identified as the channel through which the election result could pressure equities.
This is not financial advice, and crypto and equity markets are volatile and uncertain.
Reported by Cointelegraph.
Sources: Cointelegraph, CNBC