Flash volatility: Bitcoin just plunged on political concerns, then immediately bounced back to $78,300!

Markets were spooked as US midterm election results hinted that Democrats could control Congress, raising fears that crypto laws may become more restrictive. $BTC slipped slightly to $75,600.

But just hours later, political uncertainty eased and a rally in US stocks quickly pushed $BTC back to $78,300. The whole market turned green: $ETH rose 2%, DeFi led with a 5% gain, while $INJ surged 6.2%.

Notably, this recovery was driven mainly by a surge in short-term trading activity (futures volume +27%, $469 million in liquidations), NOT by new capital inflows. Open interest edged up just 3%.

Options markets also stabilized, with implied volatility for $BTC ’s weekly options falling from 41% to 34%. Demand for price protection has retreated. Everyone’s eyes are now on Friday’s US jobs report.

Can $BTC sustain this rally, or is this just the calm before the storm?

#Crypto #Bitcoin
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