Bitcoin Reclaims $80,000 as ETF Inflows Return and Zcash Leads the Crypto Rebound

Bitcoin climbed back above $80,000 on Thursday, November 5, completing a sharp round trip from the sell-off that hit crypto as results from the United States midterm elections came in. The largest cryptocurrency traded around $80,484 during Asian morning hours, up 5.7% over 24 hours, according to CoinGecko data. It had briefly fallen toward $75,700 early on Wednesday before buyers stepped in, pushing the price back above $81,000 before it settled near the $80,000 level. The recovery spread across the market: Ether rose 8% to about $2,425, Solana climbed 5.9% to $96, XRP gained 4.7% to $1.31 and BNB added 4.2% to roughly $715.

Fresh money from Wall Street helped the turnaround. US spot Bitcoin exchange-traded funds recorded $74.6 million in net inflows on November 4, ending three straight sessions of withdrawals that had drained about $1.16 billion — $643.2 million on October 30, $398.6 million on November 2 and $115.6 million on November 3. Fidelity’s FBTC led the buying with $236.7 million, its largest daily inflow in the latest reported sessions, while Bitwise’s BITB added $15.2 million and ARK Invest’s ARKB took in $19.9 million. BlackRock’s IBIT moved the other way, losing $201.2 million, a reminder that institutional flows are still far from one-directional.

Leveraged traders amplified the move. Around $378 million in bearish crypto positions were liquidated within a single hour as prices rose, with total liquidations reaching almost $747 million, according to CoinGlass data. When exchanges forcibly close short bets, traders must buy back the asset, adding fuel to a rally already under way. Sentiment flipped with the price: the Crypto Fear & Greed Index jumped from 34, in fear territory, to 50, a neutral reading. The backdrop helped too — Democrats won both chambers of Congress, Brent crude fell more than 8% and the S&P 500 rose 1.6%, while a weaker dollar supported demand for risk assets across the board, including in the forex market.

Zcash led the gains among major tokens, rising 11.7% to about $1,318, with $1.2 billion changing hands over the preceding day. The privacy-focused network is preparing for its NU7 upgrade, expected around Friday, which will cut the target time between blocks from 75 seconds to 25 — meaning deposits should be credited far sooner. But the politics cut both ways for crypto. Jeff Mei, chief operating officer at exchange BTSE, cautioned that the CLARITY Act in its current form is unlikely to pass under the incoming Congress and that interest rate cuts are still unlikely. A policy memo in the Zcash community warned separately that financial privacy could face greater scrutiny. The new Democratic majorities take office on January 3.

What to watch next is whether this is a durable recovery or a relief bounce. Bitcoin faces resistance around $81,300 to $82,000, and CryptoQuant contributor CryptoZeno has warned the correction may not be over: the Bitcoin Cycle Extremes Index sits at 15.8% on its 30-day moving average, in what he calls the “Watch / Mild Pressure” zone, without the conditions typically seen at a confirmed bottom. Friday’s October jobs report is the next big test for the Federal Reserve, where traders still price an 82% chance of a December rate hike. A hold above $80,000 with fresh ETF inflows would strengthen the recovery case; a slip back below $78,000 would reopen the midterm lows. Either way, position sizing matters more than prediction — our forex tools include calculators for planning risk before trading. (Not financial advice.)