Bitcoin price climbed 2.82% to USD 80,334.40 over 24 hours on November 5 as US spot Bitcoin ETFs recorded fresh inflows and short liquidations followed the midterm elections.
Farside Investors recorded USD 74.6 million in net ETF inflows on November 4, ending three consecutive trading sessions of withdrawals. Bitcoin had fallen near USD 75,600 during the election count before recovering above USD 80,000.
Fidelity's FBTC attracted USD 236.7 million on Wednesday, the largest inflow among U.S. spot Bitcoin funds. ARK 21Shares' ARKB added USD 19.9 million, Bitwise's BITB received USD 15.2 million, and Invesco's BTCO drew USD 4 million. However, BlackRock's IBIT recorded USD 201.2 million in withdrawals.
The mixed fund activity shows that the overall inflow did not reflect buying across every issuer. The previous Bitcoin ETF selloff produced USD 1.16 billion in combined outflows: USD 643.2 million on October 30, USD 398.6 million on November 2, and USD 115.6 million on November 3.
Even after Wednesday's inflows, the funds remained down approximately USD 439.6 million for November. Investors had withdrawn funds while Bitcoin traded below USD 80,000 amid falling technology shares and election uncertainty.
Derivatives traders also faced losses as Bitcoin reversed its decline. CoinGlass tracked USD 378.09 million in short liquidations across the cryptocurrency market within one hour on November 4. The figure covered multiple cryptocurrencies, not Bitcoin alone.
Short liquidations occur when exchanges close leveraged positions held by traders betting on falling prices. Buying to close those trades can accelerate an existing rally. The Bitcoin price recovery above USD 80,000 continued toward USD 81,000 before the cryptocurrency pulled back.
Meanwhile, U.S. equities advanced after the midterm election selloff. The S&P 500 gained 1.6% on November 4, while the Nasdaq rose 1.4%. Democrats won control of both congressional chambers, leaving investors to assess the outlook for cryptocurrency legislation under a divided government.
"So overnight it was less about the outcome and more about the uncertainty going away," said Nicolas Quatravaux, Paradigm's head of EMEA.
Quatravaux also reported about USD 660 million in Bitcoin options block trades on election day, more than double the previous session. Traders bought roughly USD 420 million in call options against USD 105 million sold. These contracts allow buyers to purchase Bitcoin at an agreed price.
Bitcoin faces resistance between USD 81,300 and USD 82,000, including its reported 50-day moving average near USD 81,909. A sustained move above that range would mark another recovery milestone, although prices have not confirmed a lasting breakout.
"Bitcoin is now oversold and should rally back towards the 82,000 level as its next target," said Markus Thielen, founder of 10x Research. The analyst based his outlook on a momentum indicator following Bitcoin's recent decline.
On the downside, USD 80,000 remains the nearest support level, followed by USD 79,000. A decline below the latter could bring the recent low around USD 75,600 back into view. Further ETF flow reports will establish whether Wednesday's buying continues.
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