Bitcoin returns to $80,500 as US stocks rally on Democratic midterm gains

Key points

• Bitcoin rose more than 4% to pass $80,500, rebounding from its lowest level in seven weeks.
• S&P 500 futures fell to 7,490 points before recovering to 7,690, which The Kobeissi Letter called a "textbook bear trap".

The largest cryptocurrency passed $80,500 as risk assets gained, according to TradingView data showing BTC/USD up more than 4% from its lowest levels in seven weeks.

S&P 500 futures initially dipped overnight to 7,490 points, their lowest since 31 July, before climbing to 7,690 and approaching month-to-date highs. Trading resource The Kobeissi Letter called the early weakness a "textbook bear trap" and noted that Democrats had flipped seven Senate seats and 25 in the House of Representatives.

James Butterfill, head of research at CoinShares, told Cointelegraph that fading election uncertainty could support a wider Bitcoin relief rally. He said real yields, dollar liquidity and exchange-traded product flows still matter more to Bitcoin than the elections, and that falling oil prices ease some inflationary pressure and rate hike expectations.

Oil fell as Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, said voters had rejected war.

Read the full story on Cointelegraph →