- Bitcoin reclaimed $80,000 after rebounding from below $76,000, while Ethereum, XRP and Dogecoin gained around 4%.
- Despite strong buying demand, nearly $1 billion in liquidations, ETF outflows and U.S. regulatory uncertainty continue to weigh on market sentiment.
Bitcoin has climbed back above $80,000 after recovering from a brief drop below $76,000, extending a broad rebound across the cryptocurrency market. Ethereum, XRP and Dogecoin also posted gains of around 4% over the past 24 hours as investors stepped in despite political uncertainty and concerns over crypto regulation.
Bitcoin Price Rebounds Above $80,000
Bitcoin rose approximately 4% in 24 hours to reach $80,300, recovering from a sharp decline that briefly pushed its price below $76,000.
The rebound came despite concerns surrounding the reported Democratic sweep of Congress and news of a $6.3 billion Binance hack. Both developments had raised questions about market confidence and the regulatory outlook for digital assets.
However, buyers stepped in during the decline, helping Bitcoin regain the $80,000 level. The recovery also came after BTC bounced from its 50-week moving average, a technical level that market commentator Scott Melker highlighted as an important support area.
The latest price action suggests that demand remains strong around lower levels, even as uncertainty continues to weigh on investor sentiment.
Ethereum, XRP and Dogecoin Join the Rally
Bitcoin’s recovery sparked gains across the wider crypto market, with Ethereum, XRP and Dogecoin each rising around 4% in 24 hours. Ethereum climbed to $2,425, while XRP recovered to $1.32 and Dogecoin advanced to $0.07705.
The rally also extended to other major altcoins, with Solana trading at $96.02 and Shiba Inu reaching $0.05476. This broader recovery suggests that buying demand was not limited to Bitcoin, as investors also moved into other digital assets.
Nearly $1 Billion in Crypto Liquidations
Despite the market recovery, trading conditions remained volatile. Data from the derivatives market showed that 129,472 traders were liquidated over the previous 24 hours, with total liquidations reaching $983.34 million.
The figures highlight the scale of recent market swings, particularly as Bitcoin moved from below $76,000 back above $80,000.
Meanwhile, spot Bitcoin exchange-traded funds recorded $115.6 million in net outflows on Tuesday. Spot Ethereum ETFs also experienced withdrawals totaling $85.4 million.
These outflows suggest that institutional investment products continued to face selling pressure even as cryptocurrency prices recovered.
Regulatory Uncertainty Remains a Concern
The reported Democratic congressional sweep has also raised questions about the future of crypto regulation in the United States.
Ledn co-founder Mauricio Di Bartolomeo warned that increased Democratic control could complicate progress on the proposed Clarity Act and lead to stricter oversight of the cryptocurrency industry.
However, he also pointed to rising U.S. government debt and persistent budget deficits as factors that could strengthen Bitcoin’s long-term appeal.
His comments highlight the contrasting forces currently shaping Bitcoin’s outlook. Regulatory uncertainty could create short-term pressure, while concerns about government debt may reinforce its appeal as a long-term alternative asset.
Bitcoin’s $75,000 Support Level Remains Important
Looking ahead, market participants are watching whether Bitcoin can maintain its recovery above $80,000.
Di Bartolomeo identified $75,000 as an important support level. A deeper decline below $70,000 could weaken the bullish outlook and raise concerns about another major correction.
For now, Bitcoin’s rebound from below $76,000 shows that buyers remain willing to defend lower price levels.
However, continued ETF outflows, regulatory uncertainty and elevated liquidations could keep volatility high as the market attempts to establish a stronger recovery.
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