Crypto Market Rebounds Sharply After Midterm Election Uncertainty Dissipates
Just 12 hours after the primary cryptocurrency plunged to a seven-week low of $75,600 following the conclusion of the U.S. midterm elections, the market has staged a dramatic recovery. Bitcoin has since reclaimed the $80,000 mark and even touched $81,000 before facing resistance.
Altcoins have mirrored this upward trend. Ethereum (ETH) has surged by over 6% in the past 24 hours, and 5% in the last hour, reaching $2,440. XRP has also broken through the $1.30 barrier.
These swift price movements have caught many over-leveraged traders off guard, particularly those with open short positions. Data from CoinGlass indicates that $380 million worth of shorts were liquidated in the past hour alone, with an additional $90 million in long positions also being wiped out.
Over a 24-hour period, the total value of liquidated long and short positions exceeds $910 million, affecting more than 117,000 trades, according to CoinGlass. The single largest liquidation order was a staggering $38 million involving the ETH/USDT trading pair on HTX.
The most probable catalyst for this market reversal is the dissipation of uncertainty surrounding the U.S. midterm elections. Earlier reports indicated that the Democratic Party secured control of both chambers of Congress, a development that initially triggered a significant price decline for cryptocurrencies.
However, markets quickly reversed course, with Bitcoin reaching $78,000. Following a period of consolidation, the cryptocurrency experienced a sharp ascent as U.S. trading hours commenced. This rally is not confined to the crypto market; Wall Street has also opened strongly in positive territory.
The S&P 500 is currently up by nearly 2%, while the Nasdaq and Dow Jones have each gained over 2%. Precious metals have also seen gains, with both gold and silver trading higher today.
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