BTC briefly broke above $81,000 after the results of the US midterm elections became clear, gaining about 4.48% in the past 24 hours. The price has bounced back, but the capital driving this rally may not have shifted into sustained spot buying.
During the rally, about $378 million in short positions across the market were forcibly liquidated in roughly an hour. Short covering can push prices higher, but on its own, it doesn’t prove that new capital is stepping in. Meanwhile, US spot BTC ETFs saw cumulative net outflows of about $1.16 billion over the previous three trading days. Those figures predate this rebound, so they can’t be taken as a direct reflection of capital flows on the day of the rally.
For now, this looks more like a recovery driven by fading election uncertainty and short covering. Next, watch to see whether ETF flows turn positive and whether BTC can hold above $80,000 after the liquidation wave has passed. If the price holds while ETFs continue to see outflows, should this rally be considered the start of a trend—or an expensive short squeeze?
During the rally, about $378 million in short positions across the market were forcibly liquidated in roughly an hour. Short covering can push prices higher, but on its own, it doesn’t prove that new capital is stepping in. Meanwhile, US spot BTC ETFs saw cumulative net outflows of about $1.16 billion over the previous three trading days. Those figures predate this rebound, so they can’t be taken as a direct reflection of capital flows on the day of the rally.
For now, this looks more like a recovery driven by fading election uncertainty and short covering. Next, watch to see whether ETF flows turn positive and whether BTC can hold above $80,000 after the liquidation wave has passed. If the price holds while ETFs continue to see outflows, should this rally be considered the start of a trend—or an expensive short squeeze?