The Midterms Couldn't Stop Bitcoin!

Bitcoin was hit by two major shocks in the same week: the biggest theft in crypto history at Binance and a Democratic sweep in the US midterms that raised fears of tougher regulation and slower crypto legislation. The host says Bitcoin briefly lost the $80,000 level, fell to around $75,000, then bounced back above $81,000 within about 12 hours, showing unusual resilience after what should have been a deeper selloff.

The host argues that the election mattered because control of Congress affects the committees overseeing the SEC, the CFTC, and crypto bills. A stricter market structure bill could give the SEC more power, while the Clarity Act may have to restart if it is not passed before this Congress ends on January 3. But the price action suggested the worst was priced in early: Bitcoin dipped before the polls closed, then surged once the blue wave became clear, helped by a large short squeeze and about $950 million in liquidations.

The episode frames $80,000 as the key level to watch. The host says Bitcoin needs daily and weekly closes above it, a successful retest, and spot-driven demand rather than just leverage. Above that, $81.5K to $82K, then $85K, become the next major hurdles; below it, $75K remains the critical floor.