Bitcoin (BTC) climbed back to $80,000 Wednesday, leading a broad post-midterm rally across crypto.
Why Crypto Surged Right After the Midterms
Bitcoin's surge to $80,000 triggered more than $320 million in short liquidations within 30 minutes.
Ethereum (ETH) climbed 6%, XRP (XRP) and Solana (SOL) added 4%, Cardano (ADA) gained 4.5%, and Dogecoin (DOGE) rose 3%.
U.S. oil prices crashed below $93 a barrel on the election results, The Kobeissi Letter noted, now down 12% over the last four days, a move that eases inflation pressure and adds another tailwind for risk assets.
Widely-followed crypto trader Michaël van de Poppe said that the midterms marked Bitcoin's bottom, calling it a textbook "sell the rumor, buy the news" setup.
Moreover, the Wolf Of All Streets host Scott Melker pointed that Bitcoin perfectly retested its 50-week moving average during the election-day drop before bouncing, calling that level the market's bear-to-bull dividing line.
Why Stocks Rallied Alongside Crypto
The Kobeissi Letter also posted that the Dow Jones Industrial Average surged more than 1,100 points at Wednesday's open, adding over $1 trillion in market cap as markets reacted to the Democratic sweep for the first time.
Moreover, LMAX Group strategist Joel Kruger told CoinDesk that markets had already priced in much of the election outcome, limiting the scope for sharp moves since even large Democratic majorities lack the votes to override a presidential veto.
Kruger said easing political risk opens the door for investors to buy market dips and cut bets on a stronger dollar, with Treasury yields potentially falling further as traders scale back expectations for Fed rate hikes beyond December.
Why Saylor Is Pointing to Bipartisan Bitcoin Support
Michael Saylor noted that Florida elected a Republican governor who backed a U.S. Bitcoin reserve, while Texas elected a Democratic senator who voted to create one for his own state.
"The case for holding Bitcoin crosses party lines," Saylor wrote.
Sen.-elect James Talarico (D-Texas) won his Senate race after voting twice for a state Bitcoin reserve bill signed into law in 2025, while Gov.-elect Byron Donalds (R-Fla.) won Florida's governorship on a platform that included pushing federal Bitcoin reserve legislation.
Saylor's comments come as federal talks continue over a potential U.S. Strategic Bitcoin Reserve, with debate still unresolved over whether the government should acquire new Bitcoin or simply hold assets already seized through law enforcement.
