Bitcoin Rebounds to $80,000 as Wall Street Rallies (5 Nov)

Market liquidations and asset performance

Another report stated that $378 million in short positions were liquidated within one hour during the rally. Total crypto long liquidations over the 24-hour period leading up to the report reached $288 million.

Ethereum led gains among major digital assets during the rally. Ethereum rose 6.58 percent to $2,421.50, while Solana rose 2.19 percent to $94.94 on the early evening of November 4, 2026.

Fool.com reported that Ethereum was up 6.43 percent and Solana was up 2.68 percent during the same time. The market data used for these figures is powered by Xignite and Polygon.io.

Democrats secure control of US Congress

The Democratic Party won control of both chambers of the United States Congress on November 3, 2026, while Donald Trump suffered a clear defeat. The Associated Press reported that Democrats secured 228 House seats and 54 Senate seats, compared to 139 House seats and 44 Senate seats for Republicans. Polymarket had assigned a 73.5 percent probability to this outcome one hour before the first polls closed.

The election results raised concerns regarding the potential for tighter crypto regulation. Stefan Muehlbauer of CertiK said the immediate read on the election result is that the CLARITY bill is likely dead. Muehlbauer said the bill is unlikely to pass in the upcoming lame-duck session or the next Congress.

Muehlbauer expects Elizabeth Warren to chair the Senate Banking Committee and Maxine Waters to chair the House Financial Services Committee. Democratic legislators are reportedly looking at changes to the stalled CLARITY Act that could broaden SEC authority, enhance investor protections, and add further limits on government officials’ crypto activities.

These regulatory discussions remain preliminary, but they could help resolve regulatory uncertainty and provide a clearer framework heading into 2027.

Macroeconomic factors drive market sentiment

Bitcoin reached $80,159 on November 4, 2026, representing a 3.2 percent increase over the previous 24 hours. This rally occurred alongside a surge in United States equities following the midterm elections.

The Dow Jones Industrial Average rose 1,511 points, or 2.9 percent, while the S&P 500 increased 1.8 percent. S&P 500 futures reached 7,690 points on Wednesday after falling to 7,490 points, the lowest level since July 31.

Falling oil prices, which dropped 11.9 percent for the week to below $93 a barrel for WTI crude, helped boost risk appetite. Brent crude approached levels below $100 for the first time since October 7.

James Butterfill of CoinShares noted that lower oil prices relieve inflationary pressure and moderate rate hike expectations. The current Bitcoin price increase is interpreted as a "rates trade" driven by these expectations and lower inflation pressure.

The 10-year Treasury yield was approximately 4.9 percent on Wednesday. Economist Robin Brooks said the central issue is whether the President will escalate or reduce war with Iran.

Escalation would increase oil prices and disrupt the current market logic. Macroeconomic uncertainty, shifting interest-rate expectations, and ongoing weakness in the broader cryptocurrency market suggest investors should stay ready for continued volatility.

ETF flows and institutional activity

The iShares Bitcoin Trust ETF (IBIT) rose 2.91 percent, while the Fidelity Wise Origin Bitcoin Fund (FBTC) rose 2.87 percent. The iShares Ethereum Trust ETF (ETHA) rose 5.72 percent.

Spot Bitcoin ETFs experienced more than $1 billion of outflows during the preceding period of weakness. Total outflows reached approximately $1.16 billion over the three sessions preceding the election results.

Bitfinex identifies three days of inflows as a benchmark for evaluating ETF flows.

RJ Fulton holds positions in Bitcoin, Ethereum, Solana, and the iShares Bitcoin Trust.

Analysts monitor key price levels and relief rally

Analysts are monitoring the $79,000 level as a sign of a stronger recovery. A move above this threshold signals that Bitcoin could be turning against the prevailing negative outlook.

James Butterfill of CoinShares stated there is potential for a "relief rally" as election uncertainty fades. He characterizes the current market activity as a relief rally rather than a fundamental change in trend.

Markus Thielen of 10x Research said Bitcoin is rallying because Trump indicated he will respect election results and voters have expressed a desire for peace. Kelly Ye of Talos stated that markets had largely prepared for the election results.

Jay Woods of Freedom Capital Markets said that historically, gridlock is good for the market. Bitfinex identifies a potential selling zone for Bitcoin between $84,000 and $85,500.

A dense selling zone begins at $84,000. According to a November 2 report from Bitfinex, 2.26 million BTC were purchased between $81,000 and $85,500.

This creates potential selling pressure from holders near their break-even point. Without new demand, the current price rise may lose momentum between $84,000 and $85,500.

Historical context and security concerns

The institution, which manages $235 billion in assets, was exploited over several days, with total losses potentially higher than $133 million due to uncounted over-the-counter transactions. ZachXBT initially reported $106 million in suspicious withdrawals on Monday, increasing the total to $133 million on Tuesday after identifying an additional $27 million in transfers.

Market sentiment continues to be affected by this theft as well as the Binance hack. The Fear and Greed Index increased from 26 to 34, though the market remains in the fear category.

Bitcoin currently trades 36.4 percent below its record high of $126,080, set on October 6, 2025. The day high reached $81,004 on CoinGecko.

Keith Alan of Material Indicators told Cointelegraph that the 50-week average acts as a "line in the sand". He warned that a failure to defend this level could result in a "deeper correction ahead". A decline below $75,618, the election-night low on Bitstamp, would negate the entire recent upward move.