Improving risk appetite drives buying activity across digital assets, while Bitcoin open interest rises 1.61 percent
Cryptocurrency markets turn positive as Bitcoin attracts renewed buying interest
Photo Credit: Unsplash/Jakub Żerdzicki
Bitcoin was trading at Rs. 76 lakh on Thursday as cryptocurrency markets rallied following the US midterm elections, with improving risk sentiment supporting gains across digital assets and equity markets. Ethereum (ETH) was priced at Rs. 2.28 lakh, while major altcoins also recorded gains. Market participants said the election outcome had provided greater political clarity, encouraging investors to return to risk assets. According to CoinGecko data, Bitcoin traded at $80,400 (roughly Rs. 76.06 lakh), while Ethereum was priced at $2,420 (roughly Rs. 2.28 lakh).
The world's largest cryptocurrency rose 3.1 percent in the last 24 hours, according to the Gadgets 360 price tracker. The rally caught bearish traders off guard, triggering approximately $330 million (roughly Rs. 3,116.1 crore) in short liquidations within an hour. Analysts noted that historical trends following the 2014, 2018 and 2022 US midterm elections showed Bitcoin initially declining to cycle lows before gaining between 25 and 90 percent over the following year.
Binance Coin (BNB) was priced at $714 (roughly Rs. 67,400), while Solana (SOL) traded at $95.98 (roughly Rs. 9,100). XRP was priced at $1.32 (roughly Rs. 124), while Dogecoin (DOGE) traded at $0.077 (roughly Rs. 7.5).
Discussing Bitcoin's recovery, market participation and important price levels, the CoinSwitch Markets Desk said, “BTC crossed $81,000 (roughly Rs. 76.4 lakh) as a broader rally across crypto and equity markets followed the US midterm elections. Improving risk sentiment, with investors expecting greater political certainty, supported the rally. BTC's open interest also rose 1.61 percent, suggesting fresh market participation.”
Highlighting Bitcoin's recovery, short liquidations and the regulatory outlook, Prateek Gupta, Head of Business at Mudrex, said, “Bitcoin has regained the $80,000 mark (roughly Rs. 75.5 lakh), rising nearly 3 percent following the Democrats' victory in both chambers of the US Congress. The move caught bearish traders off guard, triggering around $330 million (roughly Rs. 3,116.19 crore) in short liquidations within an hour. However, uncertainty over the CLARITY Act's passage in the next two years and $514 million (roughly Rs. 4,853.70 crore) in November ETF outflows remain concerns.”
Commenting on Bitcoin's recovery, altcoin performance and investor strategy, Vikram Subburaj, CEO of Giottus.com, said, “The rebound follows heavy selling and comes as investors reassess the US midterm-election outcome. However, recent ETF withdrawals and uncertainty around the Federal Reserve's December policy path continue to weigh on sentiment [...] Treat this as a relief rally until stronger confirmation emerges. Avoid chasing sharp moves. Use staggered entries, keep position sizes modest, and watch ETF flows and upcoming US labour-market data before increasing exposure.”
Overall, analysts said Bitcoin's recovery above $80,000 (roughly Rs. 75.54 lakh) reflects improving risk appetite after the US midterm elections, though concerns about institutional investment flows and the Federal Reserve's December policy outlook remain. Bitcoin's ability to sustain support around $79,000 (roughly Rs. 74.6 lakh) and hold above $80,000 (roughly Rs. 75.5 lakh) will be important, while a move above $82,000 (roughly Rs. 77.4 lakh) could strengthen the recovery.
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