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Bitcoin rebounds above $78,000 as crypto markets recover from election-driven selloff
Bitcoin and major cryptocurrencies recovered on Wednesday, November 4, after an early selloff triggered by Democratic victories in the US congressional elections, although concerns about institutional withdrawals and the recent Binance security breach continued to limit gains.
Bitcoin briefly fell below $76,000 before recovering above $78,000, while Ethereum posted stronger gains as investors returned cautiously to digital assets.
Price overview
Bitcoin last traded around $78,263, gaining 1.30% over 24 hours, while ethereum rose 1.61% to $2,314.83.
Solana traded near $92.85, down approximately 0.46%.
XRP hovered around $1.2792, while BNB traded at $698.67.
Democratic victories raise regulatory questions
Democrats secured control of both chambers of Congress, raising questions about the future of cryptocurrency legislation supported by President Donald Trump's administration.
The results initially pressured digital assets, although bargain hunting helped prices recover as the session progressed.
Binance breach continues to weigh on confidence
Investors remain concerned about the consequences of last week's multibillion-dollar Binance security breach, which prompted substantial customer withdrawals.
Although exchange flows have shown signs of stabilization, the incident has renewed scrutiny of custody arrangements and security standards across the industry.
ETF withdrawals persist
US spot Bitcoin exchange-traded funds recorded another session of net outflows on Tuesday, extending a recent withdrawal streak.
The continued redemptions suggest institutional demand has yet to recover despite Wednesday's improvement in cryptocurrency prices.
Market outlook
Bitcoin faces immediate resistance near $78,800, followed by the psychologically important $80,000 level.
Support stands around $76,000, with further downside possible if institutional selling resumes.
Friday's US employment report could provide the next major catalyst as investors reassess expectations for Federal Reserve interest rates.
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