Bitcoin and XRP Gain After Midterms as Uncertainty Eases
Bitcoin and XRP gain after midterms as polls closed on November 4. Specifically, BTC reclaimed $78,000 support. Meanwhile, XRP rose 1.67% to trade at $1.27.
Data from QuantifyCrypto shows most top-ten cryptos trading green. Tron & BCH were the only exceptions.
Why Bitcoin and XRP gain after midterms
Early results show Democrats won majorities in both the House and Senate. Consequently, the focus now shifts to crypto markets. The industry spent heavily to back various candidates.
Early results show Democrats gained seven seats for 54 in the Senate. Republicans won 43 seats.
Despite the Democratic win, BTC and XRP held steady. The price action reflects easing uncertainty and bullish post-election bets.
Grayscale says crypto moves forward regardless
Grayscale noted that crypto will move forward regardless of the outcome. According to the asset manager, only 15% to 20% of global crypto activity happens in the US. Additionally, crypto’s bipartisan nature may reduce post-election dips. Rising institutional interest also helps.
“Elections can affect crypto on the margin,” Grayscale said. “But the digital assets industry is bipartisan, global, and increasingly institutional.” Therefore, it will continue moving forward regardless of the outcome.
Bitmine chairman Tom Lee agrees. He said the election outcome is bullish for risk assets. Why? Because uncertainty around the event has now eased.
“I think post midterms, the market’s gonna rally broadly and very strongly,” Lee said. He added that this is a window for investors to buy. The market is generally risk-off now.
Open interest on Binance spikes post-elections
The futures market supports these bullish bets. Specifically, hints of rising leverage are emerging.
CoinGlass data shows Bitcoin’s open interest on Binance increased. It moved from $10.77 billion on November 2 to $11.22 billion at press time.
XRP’s open interest rose even more sharply. It moved from $419 million on November 1 to $532 million at press time. That is XRP’s highest Binance OI since October 23.
Rising OI suggests leverage is increasing. Traders are more willing to take risk as election uncertainty eases.
Bitcoin and XRP price prediction hints at further gains
Bitcoin may gain further based on the technical setup. BTC bounced from a crucial support zone at $76,000. In the process, it created a double-bottomed pattern.
BTC will confirm a bounce if it closes above the $78,600 neckline. That move could pave the way for a bullish leg toward $80,000.
The four-hour RSI rose to 56. This suggests momentum is shifting bullish. The CMF also is approaching to a positive indication as buying pressure outpaces selling. This supports a bullish Bitcoin outlook.
The XRP chart also suggests momentum is shifting to favor bulls. The price is on a rising channel on the four-hour chart. It is also moving above the channel’s midline. This shows the upward trend is gaining strength.
If XRP breaks above the channel’s upper resistance, it could target the 61.8% Fib of $1.34.
The MACD line made a higher high above the zero line. This shows bulls are regaining control. The AO bars are green and growing in length. This also suggests momentum is leaning bullish.
Therefore, XRP could face a post-election gain. Bitcoin could too. The reason is simple: uncertainty is easing, and demand for risk assets is returning.
Key takeaway
Bitcoin and XRP gain after midterms as political uncertainty clears. BTC holds $78,000, and XRP trades at $1.27. Open interest is rising on Binance. Therefore, traders should watch the $78,600 neckline for BTC and $1.34 resistance for XRP.