Bitcoin reclaimed the $80,000 level on November 5, leading a broad recovery across cryptocurrency markets after several days of heavy selling that followed the US midterm elections. Ethereum, Solana, XRP and BNB also posted strong gains as the largest digital asset extended its rebound from an election-night low near $75,600.

The recovery matters because it arrived even as institutional demand remained weak, with US-listed crypto exchange-traded funds recording continued outflows. The rebound suggests traders had largely priced in the political outcome, while forced closures of bearish positions added fuel to the rally.

Bitcoin Reclaims $80,000, Altcoins Follow

Bitcoin was trading around $80,518, up about 4.7% over 24 hours, according to Yahoo Finance Australia. Ethereum gained almost 7% to $2,420, while BNB rose around 3.6% to $718 and XRP added nearly 4% to $1.30. Solana climbed more than 4% to $95.75, Dogecoin firmed to around $0.077 and Chainlink gained more than 5%.

24/7 Wall St. reported Bitcoin at $80,360, up 3.7% over 24 hours, after the price bottomed at $75,601 during the 03:00 UTC hour, its weakest level since September 16. The dip under the October 30 low of $76,141 marked a lower low before buyers stepped in. By 07:00 UTC the price had recovered above $78,000, and it later surged to $81,131 during the 14:00 and 15:00 UTC hours.

Ethereum rose 6% to $2,433, moving above its 20-day average of $2,351, according to 24/7 Wall St. Solana lagged with a 3.3% gain to $97 and remains down 19.7% over the past 30 days, trading below both its 20-day and 50-day averages. Ethereum has shown stronger percentage gains than Bitcoin during the rebound, pointing to renewed interest in large-cap alternative cryptocurrencies, Coinpedia reported.

Even after the bounce, the cryptocurrency trades roughly 36% under the record peak of $126,080 set on October 6, 2025. The token is down 6% across the past month and 8% since the start of the year, though it still sits higher than the 200-day moving average at $73,163 and shows a 25.4% advance across the last 90 days.

Short Liquidations Fuel the Bounce

Derivatives activity played a major role in accelerating the recovery. Crypto liquidations reached $772.75 million over 24 hours, affecting 102,784 traders, with short positions accounting for $534.38 million, or roughly 69.2% of the total, according to Coinpedia. Rising prices forced bearish traders to unwind their bets, and that wave of covering generated extra buying pressure.

CryptoSlate, citing CoinGlass data, reported the rally liquidated $453.32 million in a single hour, with most losses coming from short traders, and $913.34 million over 24 hours. The figures differ from Coinpedia's 24-hour tally, reflecting different measurement windows.

24/7 Wall St. noted the first leg of the bounce was subdued: at 07:00 UTC the hourly close reached $78,019 on roughly one-sixth of the volume seen during the session's low hour, a pattern that typically indicates sellers stepping back while buyers remain cautious. The sharper second leg higher coincided with the day's heaviest volume, a pattern often driven by forced short covering. Exchanges had not yet reported a confirmed liquidation total for that session.

Decrypt described the recovery in technical terms as more of a natural bounce, in line with expectations, rather than a trend reversal or a fear-of-missing-out spike. The overnight selloff also reversed as US stock futures bounced, making it difficult to attribute the recovery to politics alone.

ETF Outflows Persist as Prices Rise

The recovery came despite continued selling from US-listed cryptocurrency ETFs. On November 3, spot Bitcoin ETFs saw roughly $116 million leave in net terms, and Ethereum products shed a further $85 million, bringing combined withdrawals close to $208 million for the session, according to Yahoo Finance Australia.

Bitcoin ETFs have now suffered around $1.16 billion in outflows across three sessions, highlighting a disconnect between improving spot prices and weaker institutional fund flows, Yahoo Finance Australia reported. 24/7 Wall St. put the November 3 outflow at $115.6 million, leaving the funds with $99.2 billion in total assets.

Should forced buying account for much of the advance, fresh demand, especially via ETFs, would be required for Bitcoin to keep climbing, 24/7 Wall St. reported. CryptoSlate similarly noted that three consecutive sessions of ETF withdrawals have deprived the market of an important source of institutional demand, and sustaining the advance will require fresh capital to absorb any renewed profit-taking.

Midterm Results and the Policy Outlook

The rebound followed Democratic wins in both chambers of Congress in the US midterm elections, an outcome that at first stirred concern about where US crypto regulation might head next. Investors have since reconsidered the near-term fallout, letting digital assets bounce back in step with equities, Coinpedia reported. Wall Street's three main indexes, the Dow Jones, S&P 500 and Nasdaq, each finished higher on November 4, with cheaper oil and a softer dollar lending further support to risk-sensitive assets.

CoinShares head of research James Butterfill said in comments to CryptoSlate that markets had largely anticipated the Democratic sweep ahead of the vote, leaving room for a relief rally once the political uncertainty cleared. He expects Democratic control to complicate efforts to advance the CLARITY Act, and said potential investigations into Trump-linked cryptocurrency businesses could divert attention from regulatory reform.

In Butterfill's view, firms that depend on fresh regulatory approvals, such as exchanges and token issuers, face greater exposure to those political shifts than Bitcoin itself, whose direction remains more closely tied to real yields, dollar liquidity and exchange-traded product flows. Analysts who spoke to Decrypt similarly said liquidity, interest rates and investment flows exert a stronger influence on the cryptocurrency itself.

The Clarity Act, which would define how federal regulators oversee different types of crypto assets, failed a key Senate vote in September, when senators voted 49-50 against advancing it, short of the 60 votes needed. Crypto groups spent more than $300 million backing candidates across the 2024 and 2026 election cycles, with about $176 million going toward more than 100 races this year alone, according to Decrypt.

Volatility gauges eased as the results sank in. According to institutional trading platform Talos, Bitcoin's DVOL declined 6% while Wall Street's VIX fell 10%, and that calming arrived alongside a softer dollar and lower Treasury yields, creating a friendlier setting for the recovery.

Binance Hack Fallout and On-Chain Signals

The rally arrived only days after a $6.34 billion breach hit Binance on October 29, the largest crypto theft on record. The FBI has attributed the attack to North Korea's TraderTraitor hacking group, according to Yahoo Finance UK. The breach triggered withdrawals and intensified an already difficult period for Bitcoin investors.

Binance said 98% of affected token assets had been replenished by November 3, while around $2.85 billion of stolen assets had been frozen or intercepted, according to Yahoo Finance Australia. The exchange has reconstructed the compromised wallet systems, swapped out the devices that were breached and strengthened internal access controls and behavioural monitoring, and says users will absorb none of the financial loss.

On-chain data suggests the rally is arriving as selling pressure begins to weaken. Darkfost, an analyst at CryptoQuant, said the firm's seller exhaustion model has dropped to readings that in the past have marked bear-market lows, following a correction of more than 10% from Bitcoin's previous high. Previous episodes of similarly depressed selling activity have coincided with market bottoms, though the indicator offers no assurance prices will immediately recover.

Darkfost identified a critical weakness: buyers have yet to show the same conviction as the sellers who exited. "Even if sellers have calmed down, demand is still needed, and Bitcoin is still short of it," he said.

History offers a mixed guide. CryptoQuant data shows Bitcoin has risen over the 12 months following all four US midterm elections since 2010, with a median return of 63%. But those gains concealed deep drawdowns: Bitcoin plunged 49.7% within about six weeks of the 2018 election, fell 39.8% after the 2014 vote and dropped 18.5% after the 2022 midterms.

Conclusion

Bitcoin's move back above $80,000 has lifted the broader crypto market, with Ethereum, XRP and Solana joining the rebound after the post-election sell-off. The recovery has been driven in large part by short liquidations and easing political uncertainty, even as US spot Bitcoin ETFs record a third straight session of outflows totaling about $1.16 billion.

The next test, according to analysts and trading data, is whether fresh demand, particularly through ETFs, materializes to sustain the rally once forced buying subsides. Bitcoin reclaimed its 20-day moving average of $80,317 but remains below its 50-day average of $81,909, a level where selling pressure has previously increased.

Frequently Asked Questions

Why did Bitcoin rebound above $80,000 on November 5, 2026?

The rebound followed easing uncertainty after the US midterm elections, a recovery in US equities, a weaker dollar and falling oil prices. Forced closures of short positions amplified the move, with $534.38 million of $772.75 million in 24-hour liquidations coming from shorts, according to Coinpedia.

How much did crypto ETFs lose in outflows during the recovery?

Spot Bitcoin ETFs recorded about $116 million in net outflows on November 3 and Ethereum funds lost $85 million, close to $208 million combined for the session. Bitcoin ETFs have suffered around $1.16 billion in outflows across three sessions, according to Yahoo Finance Australia.

What happened in the Binance hack on October 29?

Hackers stole about $6.34 billion in cryptocurrency from Binance, the largest crypto theft on record. The FBI attributed the attack to North Korea's TraderTraitor group. Binance said 98% of affected token assets were replenished by November 3, about $2.85 billion was frozen or intercepted, and users will absorb none of the loss.

How did the US midterm election results affect crypto markets?

Democrats won control of both chambers of Congress, initially sparking concern about crypto regulation. Analysts told Decrypt and CryptoSlate the result was largely priced in, allowing a relief rally. Democratic control is expected to complicate the CLARITY Act, which failed a 49-50 Senate procedural vote in September.

Has Bitcoin historically risen after US midterm elections?

Yes. CryptoQuant data shows Bitcoin gained over the 12 months following all four midterms since 2010, with a median return of 63%. However, it also suffered steep drawdowns first, including a 49.7% plunge within six weeks of the 2018 vote and an 18.5% decline after the 2022 midterms.