Bitcoin Erases Post-Election Gains as $1.1 Billion in Crypto Liquidations Hits 211,000 Traders

Bitcoin erased its post-election rally on Thursday, falling 6% to $75,700 and triggering $1.09 billion in forced liquidations across crypto derivatives markets over 24 hours, according to CoinGlass data. Nearly 211,000 traders were affected — a figure that, by most market observers' own admission, likely understates the true scale of the damage.

The collapse reversed Wednesday's rebound, when bitcoin climbed back above $80,000 following the U.S. midterm elections and early signs that the Binance hack had not spread broader disruption through the market. That optimism lasted less than a day.

Ether (ETH) dropped more than 7% to $2,247. Bitcoin touched an intraday low of $75,568 before recovering slightly. The move was not crypto-specific: as of 2 p.m. ET, the Dow Jones Industrial Average and S&P 500 were each down roughly 3%, while the tech-heavy Nasdaq Composite had fallen 4.7%. The Cboe Volatility Index surged approximately 60%.

How severe were the liquidations?

CoinGlass data shows about $879.92 million in positions liquidated over a single four-hour window — $818.90 million in longs and $61.02 million in shorts. That concentration means most of the damage occurred within hours, not days.

There is a caveat that the data itself cannot resolve. Liquidation figures draw on publicly available information, which may significantly understate actual market liquidations. In plain terms: the real losses were almost certainly larger than the headline number.

Crypto-adjacent equities absorbed parallel losses. AI and bitcoin-mining stocks led the decline, with Bitdeer and Keel Infrastructure each falling about 20%. American Bitcoin dropped 17% despite announcing a quarterly profit of $126 million — a reminder that in a risk-off session, earnings provide little protection. Strategy and Coinbase each declined about 10%.

The Official Trump (TRUMP) memecoin fell more than 20% over two days, reaching an all-time low.

Why did the post-election rally fade so fast?

Wintermute, the trading firm, concluded that Wednesday's rebound owed more to temporary relief than to any improvement in underlying conditions. The firm attributed the rally to relief after the Binance hack, enthusiasm over election results, optimism about a potential slowdown in AI spending, and falling oil prices.

"It's probably a combination of all of them in some way. What matters is that all of them seemed to be so short-lived that it actually didn't really matter," said Jasper De Maere, an OTC trader at Wintermute. "Trump is still the president for two years, the Middle East is still escalating, inflation is elevated into a strong U.S. economy."

The implication is uncomfortable for bulls: none of the structural risks priced into this market changed between Wednesday's rally and Thursday's crash. What changed was sentiment.

What do the midterms mean for crypto regulation?

The election results may also complicate the legislative outlook, potentially tempering optimism that helped drive the rebound.

Paul Howard, senior director at Wincent, said the Democrats' strengthened position in Congress could force bipartisan cooperation for meaningful progress on crypto legislation over the next two years. With the Clarity Act's prospects uncertain, Howard expects the existing regulatory framework to remain largely intact until the next election cycle — meaning the status quo, not reform, is the base case.

Ryan Kirkley, CEO of Global Settlement Network, said the election could delay crypto legislation but would not fundamentally alter longer-term institutional demand for digital assets.

"Investors are still focused on liquidity, interest rates and the broader economy, and those factors will continue to influence the market regardless of which party controls Congress," Kirkley said.

That view carries a caveat of its own: institutional demand has repeatedly been cited as a stabilizing force, yet it did not prevent Thursday's leveraged washout.

Where does bitcoin go from here?

If weakness persists, Wintermute identified $73,000 and $68,000 as the next levels to watch. The firm said it would need to see bitcoin convincingly reclaim and hold $80,000 before turning more positive on the market's direction.

Both conditions are testable within days, but neither is guaranteed. For now, the burden of proof sits with the buyers, and the market has given them little evidence to work with.