Bitcoin's recovery above $80,000 reflects improving risk appetite, with $983.34 million in liquidations

Bitcoin traded near $80,680, gaining approximately 4.9% over 24 hours, while Ether rose 7.3% to around $2,429. Total crypto market capitalisation reached $2.69 trillion, with a trading volume of $94.74 billion, and the Fear and Greed Index stood at a neutral 43. Bitcoin's recovery above $80,000 reflects improving risk appetite, although sustained buying will determine whether the rally holds.

The recovery coincided with a strong session for US equities. The Dow gained 3.03%, the S&P 500 advanced 1.58% and the Nasdaq climbed 1.44%. The VIX fell more than 20% to 16.61, signalling an easing in demand for protection against market volatility.

Short covering amplified crypto's rebound. More than $415 million in liquidations was reported within an hour as Bitcoin reached $80,000, including approximately $330 million in short positions. Separately, the supplied 24-hour snapshot recorded $983.34 million in liquidations. Futures volume increased 27%, against a 3% rise in open interest.

The reported Democratic sweep of Congress brings the pace of US crypto legislation into focus. Bitcoin's recovery suggests investors absorbed the immediate election uncertainty, although the policy outlook remains a factor for the industry.

Institutional demand remains a watchpoint. Tuesday's reported outflows of $115.6 million from Bitcoin ETFs and $85.4 million from Ether ETFs indicate that the price recovery has yet to receive consistent support from that channel. For Bitcoin, sustaining $80,000 and clearing $82,000 would strengthen the recovery case. The 76,000–78,000 area remains a downside reference zone, followed by $75,000.