Bitcoin Erases Overnight Crash as $420 Million Bets Fuel Bullish Hopes

Bitcoin recovered from $75,700 to more than $78,300 within hours on Wednesday after an election-day selloff, as traders bought roughly $420 million in call options, contracts whose value rises with Bitcoin. The initial drop came as Democrats won both chambers of Congress in the U.S. midterm elections, with investors fearing the result could delay Trump's crypto-friendly legislation. Election-day Bitcoin options block trading reached $660 million, and leveraged trading amplified volatility through forced closures and liquidations. Bitfinex identified $81,300 as major resistance, while Wintermute analysts said Bitcoin needs to reclaim and hold $80,000 with spot buying and exchange-traded fund inflows; U.S. spot Bitcoin exchange-traded funds recorded about $1.16 billion in net outflows over the last three trading sessions.