Bitcoin Recovers From Midterm Dip as Democratic Congress Clouds CLARITY Act

By Coinvote

Published November 4, 2026 - 15:23 UTC | 5 mins read

Bitcoin rebounded above $79,000 after dipping to about $75,600 as early midterm returns pointed to Democratic control of Congress. The result matters because the CLARITY Act, the crypto market structure bill, now faces a changed Senate and a short legislative calendar.

Bitcoin bounces after a sharp election-night drop

Bitcoin climbed back above $79,000 after sliding to roughly $75,600 as U.S. midterm results arrived, according to Bitcoin Magazine. CoinDesk put the low slightly higher, at $75,700, and tied the drop to initial results suggesting a Democratic majority in both the House and the Senate. The Defiant described the recovery as a 5% rebound from the election-night low.

CoinGecko now lists bitcoin at $80,949, up 4.8% over 24 hours. The coin is still down 8.4% over 30 days and sits well below its record of $126,080 set in October 2025. Ether trades at $2,440 after a 6.9% daily gain, while its 30-day change remains negative at 12.9%.

A market already weighed down before polls opened

Bitcoin Magazine reported that bitcoin traded near $77,500 on Tuesday morning as voting began, roughly $30,000 below its price a year earlier. Bitcoin Magazine said the month ended roughly 7% lower, a second consecutive down October. On Oct. 28, following a Federal Reserve hold and weak earnings reports from Alphabet and Samsung, bitcoin slipped under $80,000 for the first time in several weeks. About $356 million in leveraged positions were liquidated.

The bigger shock came on Oct. 29. Bitcoin Magazine reported that about $6.3 billion was taken from Binance's hot wallets by hackers the FBI links to North Korea, in what it described as the biggest crypto theft recorded. Bitcoin dropped roughly 4% on Friday, and over $1.3 billion of leveraged positions were liquidated. SoSoValue data cited by the outlet showed U.S. spot Bitcoin ETFs losing $643.3 million that day, the largest daily outflow since June 25. Another $399 million left on Monday.

The numbers behind the move

Bitcoin Magazine's pre-election report supplies the technical and macro levels that traders were watching going into the vote.

Traders were watching a support zone of $76,264 to $76,476, which coincides with the 200-day exponential moving average. The September low of $74,967 lies below it.
The 50-day EMA near $80,800 was the first resistance level above the market.
The Crypto Fear & Greed Index read 37 on Monday, in "fear" territory.
On Oct. 28 the Fed kept its rate range at 3.75% to 4.00%, and the 10-2 vote included two dissents that favored an increase. Polymarket traders priced roughly a 71% chance of a rate increase in December.
The annual rate of PCE inflation for September was 3.6%. Brent crude closed Monday at $104.66 and was back near $106.60 on Tuesday.
The Nasdaq lost 5.3% in October, including a 2.9% drop on Friday, and bitcoin has traded in step with tech stocks.

How the outlets' accounts fit together

Only Bitcoin Magazine's Tuesday report is available in full. The other three pieces are known here through their headlines and summaries, so their details cannot be checked beyond that. The accounts agree on the shape of the move: a dip into the mid-$75,000s, followed by a recovery toward $79,000. They differ slightly on the low, with $75,600 from Bitcoin Magazine and $75,700 from CoinDesk.

They also differ in framing. Bitcoin Magazine's later headline describes a Democratic sweep of both chambers, while CoinDesk wrote that bets and early returns pointed that way. That distinction matters because the CoinDesk summary describes a market reacting to a probable outcome.

The Defiant adds the most useful context. It said ether and Solana joined the recovery, while futures tied to the S&P 500 and to gold each rose roughly 3% across a comparable overnight stretch. CoinDesk's summary adds that stock futures and the dollar slid while Treasuries rallied. Taken together, the swing looks like a broad cross-asset reaction rather than a bitcoin-specific event.

Why the CLARITY Act is the real stake

Control of Congress is at stake in the election, and the outcome shapes whether the CLARITY Act, a bill setting rules for crypto markets, advances. Bitcoin Magazine noted that the bill passed the House 294-134 in July 2025 but failed a Senate cloture vote 49-50 on Sept. 15. Bitcoin Magazine said the legislation lapses unless lawmakers act before the new session begins on Jan. 3, after which it would need to be introduced again.

Before the vote, Kalshi prediction markets priced Democratic control of the House at 94% and of the Senate at 74%. Bitcoin Magazine said a Democratic Senate would probably make Sen. Elizabeth Warren the leading candidate to head the Banking Committee. Analysts at TD Cowen judged a Democratic sweep to be the likeliest result and the one that would serve the industry worst. In their view, a divided Congress leaves room for a narrower deal. CNBC reported that spending by crypto groups in the midterms exceeded $200 million.

The rebound therefore sits awkwardly beside that analysis. Whether it reflects relief that uncertainty has ended, the wider rally in stocks and gold, or something else is not established by the reports. Traders who follow Solana-based tokens can also track new listings on Coinvote's Solana page, since The Defiant said Solana joined the recovery.

What to watch next

According to Bitcoin Magazine, Binance is due to publish its next proof-of-reserves snapshot on Wednesday. The October jobs report is scheduled for Friday, with forecasts clustered near 65,000 versus 29,000 in September. The October CPI release comes on Nov. 10, and the Fed's next policy decision is on Dec. 9.

Options markets looked calm before the vote, with Deribit's DVOL index near 36.5, a sign that traders expected no large swings. Seasonality points the other way. Bitcoin lost 36.6% in November 2018 and 16.2% in November 2022; those were the latest two midterm years, and each fell within a bear market.

Several questions remain open. Can bitcoin hold above the 50-day EMA near $80,800 now that it has traded back through that area? Will lawmakers try to move the CLARITY Act before Jan. 3? And do ETF flows turn positive after the heavy outflows reported last week?

Market snapshot

Asset	Price	24h	7d	Market cap
Bitcoin (BTC)	$80,949	+4.8%	-1.8%	$1.63 trillion
Ethereum (ETH)	$2,440	+6.9%	+1.7%	$298.21 billion

CoinGecko data as of 2026-11-04 (UTC); DeFi TVL from DefiLlama: Ethereum $44.47 billion, Solana $5.45 billion.

On Coinvote

New Solana Tokens Listed Today: 3,787 projects tracked, 50 new listings in 7 days, 266 community votes today.
Best Solana Meme Coins Today: 2,468 projects tracked, 33 new listings in 7 days, 102 community votes today.
New Ethereum Tokens Listed Today: 2,944 projects tracked, 16 new listings in 7 days, 16 community votes today.
Best Ethereum Meme Coins Today: 262 projects tracked, 5 new listings in 7 days, 0 community votes today.

FAQ

Why did bitcoin drop to about $75,600 on election night?

CoinDesk reported that markets were rattled by initial results suggesting Democrats would win both the House and the Senate. Stock futures and the dollar slid while Treasuries rallied. Bitcoin Magazine put the low at $75,600, and CoinDesk put it at $75,700.

What happens to the CLARITY Act if Congress does not act?

According to Bitcoin Magazine, the bill lapses unless lawmakers act before the new session begins on Jan. 3, and it would need to be introduced again. It passed the House 294-134 in July 2025 but failed a Senate cloture vote 49-50 on Sept. 15.

What is the price of bitcoin now?

CoinGecko lists bitcoin at $80,949, up 4.8% over 24 hours. It is still down 8.4% over 30 days and below its all-time high of $126,080 from October 2025.