Key Facts

  • Bitcoin climbed back above $80,000 on Wednesday after Binance said it had replenished 98% of the funds affected by its exchange hack, and that thin liquidity was slowing purchases for the remaining 2%.

  • US stocks opened higher on Wednesday after Democrats won control of the US House and Senate: the Dow Jones Industrial Average rose about 1,000 points, or 1.93%, the S&P 500 gained 1.14% and the Nasdaq added 1.07%.

  • Bitcoin has held $76,100 to $76,300 on both retests since the hack, according to Hyblock CEO Shubh Varma, and traders are turning their attention to the odds of a US Federal Reserve rate hike in December.

Bitcoin climbed back above $80,000 on Wednesday after Binance said it had replenished 98% of the funds affected by its exchange hack, and that thin liquidity was slowing purchases for the remaining 2%.

US stocks opened higher on Wednesday after Democrats won control of the US House and Senate: the Dow Jones Industrial Average rose about 1,000 points, or 1.93%, the S&P 500 gained 1.14% and the Nasdaq added 1.07%.

Bitcoin has held $76,100 to $76,300 on both retests since the hack, according to Hyblock CEO Shubh Varma, and traders are turning their attention to the odds of a US Federal Reserve rate hike in December.

“Purchases for the remaining 2% are expected to be slower because these tokens are less liquid.” 

“Purchases for the remaining 2% are expected to be slower because these tokens are less liquid.” 

Fears of a bank run on Binance were also allayed by the exchange’s immediate commitment to cover all losses, stablecoin issuers freezing nearly $3 billion in USDC and USDT, and the fact that Binance was liquid enough to withstand a hack. 

Quickly reopening withdrawals for certain coins also helped, and data from DeFiLlama showed 24-hour net withdrawals dropping to $3.3 billion from a peak of $7 billion. 

Since Oct. 30, the spot BTC ETFs saw $1 billion in outflows. Over the next few weeks, Binance and global exchange volumes, plus ETF flows, will show how markets really feel about the hack and the liquidity dynamics across the order books.  

US Stocks Rallied After the Democrats' Election Sweep

US stock markets also opened with strong gains following the Democrats’ “blue wave” which handed them control of the US House and Senate. The Dow jumped about 1,000 points, or 1.93%, at the open, while the S&P 500 rose 1.14% and the Nasdaq gained 1.07%.

A week earlier, Bitcoin’s hold on the $80,000 to $79,000 support level weakened as US equity markets sold off over AI CAPEX worries and Big Tech sector earnings, so Wednesday’s stock market rally could be helping Bitcoin return to its 30-day average trading range. 

US stock indexes performance. Source: Yahoo Finance, Ray Salmond

Bitcoin Taps $81K as $76K Holds as Key Support

According to Hyblock co-founder and CEO Shubh Varma, onchain and order book data show Bitcoin is still caught between competing liquidity shelves that enforce the current range.

Varma said, “Bitcoin is finding bids around $74–76K on Binance, Coinbase and Hyperliquid. Resting buy orders 2% to 5% below the price outweigh sell orders by roughly 2.5 to 1, and Bitcoin has held $76.1 to $76.3K on both retests since the Binance hack.” 

“Spot buyers have also outpaced futures traders over the last six hours, which is a positive; they see a discounted buying opportunity. This exact same $76,000 zone is where Hyblock data estimates the biggest cluster of leveraged long liquidations, so it's support until it isn't.”

“Spot buyers have also outpaced futures traders over the last six hours, which is a positive; they see a discounted buying opportunity. This exact same $76,000 zone is where Hyblock data estimates the biggest cluster of leveraged long liquidations, so it's support until it isn't.”

Spot Bitcoin buyers step in to buy the dip; order books show bulls’ presence. Source: Hyblock

Traders Shift Focus to December Fed Rate-Hike Odds

The October Fed hold trade is now over. The midterm results are in, and the Anthropic IPO is slated for November. This means new narratives will shape end-of-year price action, and smart money will position with a longer view on Fed policy and macro in 2027. The real question: is it still bullish for Bitcoin? 

Traders have shifted their view forward to the December Fed interest rate hike odds. They are also asking what a Democratic Party-led House and Senate mean for the crypto sector as a whole. Will the Trump administration resume the tactical aspect of the War in Iran, and what impact will that have on bonds, oil, gold, the DXY, and inflation?