Bitcoin holds $80,000 as crypto fear fades to neutral after midterms

Crypto sentiment returned to neutral as Bitcoin held its post-midterm gains above $80,000. The Crypto Fear & Greed Index jumped to 50 from 34, its first neutral reading since the Binance hack hit the market a week ago, while Ether led the majors higher.

Bitcoin's price barely changed since our last recap, but the mood around it did. The rally that followed the Democratic sweep of Congress has now held through the US evening, and the news flow has shifted from the vote itself to what it means for crypto rules in Washington.

Bitcoin

According to CoinGecko data at 01:27 UTC on 5 November, Bitcoin traded at $80,398, up 4.38% over 24 hours. It is still down 0.97% over seven days, so the week's losses after the Binance hack are not fully recovered. The 24-hour range ran from $75,695 to $81,004. Trading volume was about $40 billion and Bitcoin's market value stood at $1,616.4 billion. BTC/USD chart.

Ether and the majors

Ether outperformed again, rising 6.52% to $2,413.61 and turning positive on the week. It is the only major in the table with a 7-day gain. ETH/USD chart.

BNB, the token most exposed to the hack, gained 2.99% but remains down 5.36% on the week. Solana has the weakest 7-day showing at -6.41%.

Breadth and sentiment

Total crypto market value was $2.705 trillion, up 0.93% in 24 hours on CoinGecko's measure. Bitcoin dominance stood at 59.6% and Ether's share at 10.9%.

The Fear & Greed Index tells the story of the past week. It was 51 (Neutral) on 29 October, fell to 30 after the hack, sank to 26 on 3 November, recovered to 34 on 4 November and reached 50 (Neutral) today.

Not every token joined in. Cointelegraph reports that the official Trump token and World Liberty Financial's token were the two biggest losers in the top 100 on Wednesday, even as Bitcoin and Ether rallied.

The news behind the move

Washington outlook darkens for crypto rules

CoinDesk reports that industry experts see the Clarity Act as likely dead in its current form, with incoming Democratic majorities eyeing tighter scrutiny of crypto markets and tokenized stocks. Cointelegraph notes that crypto super PACs spent more than $176 million on the midterms. The broader macro backdrop was a weaker dollar, covered by our sister site in the dollar's slide after the Democratic sweep.

Some parts of the industry look less exposed. According to CoinDesk, experts said tokenization and stablecoin work may continue under existing laws. CoinDesk also reports that Grayscale expects global demand and institutional adoption to sustain the industry, while BlackRock sees little impact on its crypto business.

Exchange security stays in focus

Cointelegraph reports that Mercado Bitcoin will begin a phased reopening on Monday and will cover losses. Customers will first be able to view holdings, with withdrawals and trading still suspended pending security checks. BitMart's founder said its security team was "severely understaffed" after a new hack, according to Cointelegraph, as analysts flagged transfers possibly linked to the Mercado Bitcoin attack. Decrypt reports that Coinbase told customers it was not affected by the Binance hack and keeps over 99% of assets offline.

What to watch next

• Mercado Bitcoin reopening: the phased restart begins Monday, per Cointelegraph, with withdrawals and trading to follow security checks.
• Clarity Act: whether the bill survives in any form as the new Congress takes shape, per CoinDesk.
• France: an amendment requiring reporting of self-custodied crypto worth 100,000 euros or more still needs to survive the budget process, Cointelegraph reports.
• Bitcoin soft fork: Decrypt covers a proposed upgrade to patch four legacy bugs.

CryptoClick Desk