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Bitcoin Rebounds Toward $80,000 After Election-Driven Short Squeeze

A wave of derivatives liquidations forced a rapid recovery that looks fragile without renewed ETF buying or clearer macro signals.

Overview

  • The market fell into the mid-$75,000s on Wednesday when Democratic midterm results briefly spooked traders, then a large short squeeze pushed bitcoin back toward $78,000–$80,000 within hours.
  • Industry data shows about $950 million of leveraged crypto positions were liquidated over 24 hours, with roughly $403 million tied to bitcoin and reports that $215 million in bitcoin shorts were closed in a single hour.
  • Net flows into U.S. spot bitcoin ETFs have been negative recently, including roughly $643.3 million on Oct. 30 and $398.6 million on Nov. 2, and funds reported further outflows that left three-day totals above $1 billion.
  • On-chain and technical measures place many short-term buyers near a $75,000–$76,000 cost basis (STH MVRV ≈ 1.02), making that zone a key support level whose failure could invite deeper downside ahead of U.S. CPI on Nov. 10 and the Fed meeting in December.
  • Broader market moves helped the rebound as oil and the dollar weakened and stocks rallied, while some institutions reportedly continued accumulating spot bitcoin, leaving traders facing a fragile recovery that could swing sharply with ETF demand, macro data or regulatory shifts.