Bitcoin and gold surge after US elections, but $378 million short squeeze casts doubt on debasement trade
Bitcoin rose above $81,000 as gold surged and the US dollar weakened after the midterm elections, reviving the idea that investors are buying scarce assets to hedge against currency debasement. But gains in stocks, falling Treasury yields and easing political uncertainty suggest improving market sentiment may explain the move better than a fundamental shift in Bitcoin’s role. The rally was amplified by about $378 million in crypto short liquidations, while spot Bitcoin ETFs had suffered $1.16 billion in withdrawals over the prior three sessions before recording modest inflows. Analysts cited key support near $75,700–$77,700 and resistance around $84,000–$87,000. The upcoming US employment report could shift rate expectations and test the recovery.
