Leading cryptocurrencies surged alongside stocks on Wednesday as markets weighed the Democratic sweep of Congress and possible resolution of the Iran conflict.
All Green in Here
Bitcoin topped $81,000 and Ethereum climbed to $2,440 as cryptocurrency markets rallied after a period of stagnation. XRP and Dogecoin also staged sharp upticks.
Cryptocurrency-related stocks, including Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR), closed up 5.09% and 5.85%, respectively.
Over $990 million was liquidated from the cryptocurrency market in the last 24 hours, with Coinglass data showing $577 million in bearish short positions getting wrecked.
Bitcoin’s open interest increased 1.61% over the last 24 hours. Rising open interest alongside a rising price suggests fresh capital and new contracts are entering the market.
Market sentiment flipped from “Fear” to “Neutral,” according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
Stocks Market Erupts
The Dow Jones Industrial Average rose 1,569.40 points, or 3.03%, to close at 53,356.12, posting its best session since April 9, 2025, when President Donald Trump paused his reciprocal tariffs. The S&P 500 added 1.58% to end at 7,688.62, while the tech-focused Nasdaq Composite gained 1.44% to settle at 25,736.51.
The rally followed a Democratic sweep of both chambers of Congress, as investors bet that a divided Washington would bring greater political certainty and make major policy changes harder to pass.
The United States Oil Fund (NYSE: USO), which tracks West Texas Intermediate crude oil, plummeted 8% in the session after Vice President JD Vance blamed the GOP’s electoral setback on the Iran war.
What’s Next for Bitcoin?
Michaël van de Poppe, a widely followed cryptocurrency analyst and trader, stated that Bitcoin is about to “flip its downtrend into an uptrend.”
The analyst flagged $79,800 as a key level for strong buyer conviction, with $79,000 as the next support.
“If that doesn’t hold, markets are in trouble,” he added. “If it does, we’ll be in for a big breakout coming in 7-10 days on the markets and the trend to shift back into an uptrend.”
On-chain analytics firm CryptoQuant noted that Bitcoin is now trading almost directly around the Trader On-chain Realized Price—which measures the average price paid by recent market participants rather than long-term holders.
“The reaction from this area may provide useful information about whether the current correction is finding support or whether additional downside pressure is developing,” CryptoQuant added.
Photo: Memory Stockphoto / Shutterstock
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