Bitcoin is trying to consolidate at the 80,000-dollar level
Bitcoin, even though it approaches the 80,000-dollar threshold after the U.S. midterm elections, has not yet formed a strong spot demand behind the price movement. The fact that a significant portion of the rally comes from the liquidation of short positions keeps a cautious outlook in the market.
The leader of the cryptocurrency market, Bitcoin, briefly retreated in Asian trading on Wednesday following news of the Democrats' success in the U.S. midterm elections. The cryptocurrency later recovered its losses and managed to hold its level around $80,000.
Binance founder Changpeng Zhao also highlighted Bitcoin's resilience in a post on the social media platform X. However, according to CoinDesk's market assessment, two key factors that would support the sustainability of the rally have yet to come into play: new leveraged positions and strong spot purchases.
Entry into spot Bitcoin ETFs remained limited.
SoSoValue data revealed that only $74 million of inflows entered spot Bitcoin ETFs listed in the United States on Wednesday. Those funds had recorded net outflows exceeding $400 million in the first two trading days of the week and over $500 million last month.
The fact that the Coinbase Premium indicator, used to gauge U.S. investors' interest in Bitcoin, remained in the negative zone also signaled that demand had not yet strengthened. This indicator had typically been in positive territory during previous sustained rally periods.
No significant activity was seen in the derivatives markets either. According to Coinglass data, the open interest in Bitcoin futures hovered around $53.4 billion.
In response, a total of $450 million in short positions were liquidated in the cryptocurrency market over the last 24 hours. Of that amount, $300 million came from Bitcoin transactions. Thus, Bitcoin short liquidations have reached their highest level since September 21.
New buying is required for the rally to continue.
Marex analysts said that falling bond yields, a weakening dollar, and a decline in oil prices were contributing to Bitcoin's move back toward the $80,000 level.
According to analysts, the closure of short positions by investors who had taken downward bets in the early phase of the recovery proved decisive. However, for the rally to continue, stronger capital inflows into the spot market and a healthier structure in derivatives markets are needed.
Unemployment benefit claims in the US surpassed expectations.
The weekly unemployment benefit claims announced in the US were also among the data on the market's agenda. According to data released at 4:30 p.m. Turkey time, the number of first‑time claimants fell short of the 197,000 expectation, coming in at 189,000.
The ongoing unemployment benefit applications were announced at 1,718,000.
Giottus's senior manager Vikram Subburaj, an India‑based cryptocurrency exchange, said the current price move should be seen as a relief rally until it is backed by strong indicators.
Subburaj advised investors to follow ETF cash flows and U.S. labor‑market data instead of chasing rapid price moves, and to wait for stronger signals before taking new positions.
Bitcoin was trading at $79,700 when the news was released.
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