Bitcoin Jumped From $75,695 to $81,004 After Democrats Took Congress. Will It Hit $100K Again? - 24/7 Wall St.
Bitcoin jumped from $75,695 to $81,004 after Democrats gained control of Congress in the November 2026 midterms, though the rally may be driven more by short squeezes than political factors.
Bitcoin experienced a significant surge following the Democratic victory in the November 2026 midterm elections, with the cryptocurrency climbing from $75,695 to a high of $81,004. Currently trading at $80,485, Bitcoin is up 4.7% in the last 24 hours and 3.4% over the past week, after briefly dipping to a six-week low.
Short Sellers Fueled the Rally
Bitcoin's surge past $81,000 was primarily driven by short sellers being forced out of their positions. When the price rises beyond certain levels, exchanges automatically close these losing positions to limit losses, a process known as liquidation. According to CoinGlass data, approximately $950 million in cryptocurrency positions were liquidated within 24 hours ending November 4, 2026, with $560 million, or 58.9%, coming from short positions.
Bitcoin alone accounted for $403 million of these liquidations. Each forced closure acts like a buy order, pushing prices higher and triggering further liquidations in a chain reaction known as a short squeeze. However, this rally isn't solely due to political factors, as a short squeeze eventually runs out of steam once shorts have been cleared out.
Sentiment was already quite bearish, pointing to signs of seller exhaustion.
Market Sentiment Remains Cautious
Analysts from Bitwise and CoinShares noted that the Democratic victory was largely 'priced in,' meaning many investors had already sold their holdings before the vote count. The total cryptocurrency market value rose only 1.15% over 24 hours, even as trading volume surged 51.5%, suggesting that while many coins changed hands, prices did not rise significantly.
Market sentiment remains neutral, with a score of 46 on the Fear and Greed Index, which ranges from 0 to 100 and measures investor mood. Ethereum rose 6.7% and typically shows more volatility than Bitcoin when market risk appetite returns, while Solana rose 4% despite remaining down 20.8% over the past 30 days.
Regulatory Landscape Shifts
The Democratic midterm victory has implications beyond Bitcoin's price. The Digital Asset Market Clarity Act, designed to set federal rules for cryptocurrency trading, has passed the House. In the Senate, however, a procedural vote in September 2026 fell short at 49 to 50, missing the 60 votes needed to advance the bill.
If the Senate does not act before the new Congress convenes on January 3, 2027, the bill will need to be reintroduced under a Democratic majority. Crypto journalist Eleanor Terrett reported that House Democrats are considering a broader market-structure bill that could expand the SEC's role while limiting the CFTC's oversight of futures trading.
Path to $100,000 Unclear
A return to $100,000 seems unlikely unless new buyers step in to support the rally. Bitcoin is currently trading 36.2% below its all-time high of $126,080, reached in October 2025, and has declined 22.5% over the past year. However, interest in Bitcoin is increasing, as shown by a 142% jump in Wikipedia page views for its entry, from 14,488 to 35,107 in the past week.
For Bitcoin to regain momentum, it would need to close above the 30-day high of $85,540, set on October 6, 2026. If it slips below the $75,695 low from election night, that would suggest the recent rally was merely a temporary reaction. While Bitcoin's recovery appears fragile for now, a sustained rebound depends on fresh buying interest that has yet to materialize.
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