Bitcoin has reclaimed the $80,000 level after the Democratic Party’s gains in both chambers of Congress in the U.S. midterm elections eased uncertainty surrounding the direction of future policy. With President Donald Trump indicating he would accept the election results and expectations growing for an early end to the U.S.-Iran war, a broad “relief rally” has taken hold across the cryptocurrency market.
As of 8:10 a.m. on Nov. 5, Bitcoin was trading at 108.32 million won, or approximately $80,725, on domestic cryptocurrency exchange Bithumb, up 1.76% from 24 hours earlier. Strength was equally pronounced in global markets. According to CoinMarketCap, Bitcoin rose 3.67% over the previous 24 hours to $80,641, reclaiming the $80,000 threshold. Major altcoins, including Ethereum and Solana, also joined the upswing, gaining 2.32% and 0.63%, respectively. The pace of altcoin gains, however, varied by asset. At one earlier point in the data-collection window, XRP had slipped 0.34%, reflecting a mixed picture, although subsequent data showed XRP and other major altcoins moving higher.
The primary driver behind the rebound was reduced uncertainty following the midterm election results. With Democrats securing control of both chambers of Congress, analysts expect coordination and negotiation between the legislature and the executive branch to play a greater role in advancing major policy initiatives. Expectations for an early end to the conflict in the Middle East also factored into markets, sending international oil prices down more than 8%. West Texas Intermediate (WTI) crude for December delivery closed down 8.29% at $88.12 per barrel on the New York Mercantile Exchange, while January-delivery Brent crude, the international oil benchmark, fell 8.67% to $94.62 per barrel.
U.S. equity markets also surged broadly, lending further support to investor sentiment in the cryptocurrency market. The Dow Jones Industrial Average closed up 3.03% from the previous session at 53,356.12, marking its biggest percentage gain in about 19 months. The S&P 500 and the Nasdaq Composite also rose 1.58% and 1.44%, respectively, reflecting a broad sense of relief across markets. Alex Kuptsikevich, chief analyst at global financial services firm FxPro, said the cryptocurrency market’s recent reversal resembled movements seen after previous U.S. presidential elections. He noted that the rally suggests markets are more concerned about uncertainty itself than about any particular political party.
In contrast to the broader market rally, some cryptocurrencies associated with President Trump and his family posted losses. OFFICIAL TRUMP (TRUMP) plunged 19.63% over the previous 24 hours to $1.28. World Liberty Financial (WLFI), backed by the Trump family, also fell 6.51%, making it one of the biggest decliners among the top 100 cryptocurrencies by market capitalization. TRUMP is a meme coin launched by President Trump in January 2025, while WLFI is the governance token of a decentralized finance (DeFi) project backed by the Trump family.
Democrats’ control of Congress is also expected to reshape the legislative environment for cryptocurrencies. Industry observers have suggested that the CLARITY Act, a bill aimed at establishing a regulatory framework for digital asset markets, may face delays or fail to advance. Democrats have called for stronger ethics provisions to prevent conflicts of interest involving senior government officials engaged in cryptocurrency-related businesses. The bill failed to secure the 60 votes needed to advance in a Senate cloture vote in September. Stefan Muehlbauer, head of U.S. government affairs at blockchain security firm CertiK, said the election results had made the bill’s legislative prospects even more uncertain. That said, changes in the legislative environment are not expected to halt the broader growth of the cryptocurrency industry or the participation of traditional financial institutions in the market. Blockchain analytics firm Glassnode said Bitcoin is now more deeply integrated into the traditional financial system than in previous market cycles, with banks, asset managers and exchange-traded funds (ETFs) participating in the market.
Despite the price rebound, overall market sentiment remains cautious. The cryptocurrency Fear and Greed Index stood at 34, still in the “fear” zone. Readings differed by data provider, however. Alternative.me’s index stood at 34, indicating fear, while CoinMarketCap’s reading was 43, in the neutral range. The index is generally interpreted as reflecting greater investor fear the closer it is to zero, and stronger optimism the closer it approaches 100.
The “kimchi premium” — the price gap between domestic and overseas cryptocurrency markets — varied slightly depending on the exchange and time of data collection but remained in positive territory. According to CryptoPrice, a cryptocurrency market comparison platform, the Bitcoin kimchi premium on Bithumb stood at 0.22%. On Upbit, the Bitcoin premium was 0.47%, while the Tether premium was 0.54%. These positive premiums indicate that Bitcoin and Tether were trading at higher prices on domestic exchanges than their equivalent prices in overseas markets after conversion into won. The Tether premium, in particular, reflects the extent to which the won-denominated price of Tether — a dollar-pegged stablecoin — exceeds its dollar-equivalent price in overseas markets. The Upbit composite index rose 3.68% over the previous 24 hours to 10,869.82, while the total market capitalization of digital assets traded on Upbit increased 3.10% to 3,364.39 trillion won. The 24-hour trading volume also surged 60.45% to 1.27 trillion won.
Some experts have characterized the rally as a “bear trap” — a rebound that catches investors betting on further declines off guard — and have advised caution. This suggests that, despite the price recovery, it is too early to conclude that the downward trend has definitively ended.
Meanwhile, security risks, including large-scale hacking incidents, have emerged as another market concern. Blockchain investigator ZachXBT identified French financial group Crédit Mutuel Arkéa as the institution affected by a recent $133 million cryptocurrency theft. ZachXBT said the financial group, whose assets total approximately $235 billion, was suspected of having been targeted in a hacking attack over several days. The actual amount stolen could exceed current estimates if over-the-counter (OTC) transactions are taken into account, underscoring the need for caution among investors.
