Why Did Bitcoin Dump After the US Election? History and Causes

Bitcoin's rally above US$80,000 lasted only one day. On Thursday (November 5, 2026), BTC slid to around US$75,700 and triggered liquidations of leveraged positions worth more than US$1 billion. 

This Bitcoin dump after the US election raises a fair question: is the midterm election result the cause? History shows Bitcoin fell after the 2018 and 2022 midterms but rose after the 2020 and 2024 presidential elections. 

Bitcoin's price after US elections has actually more often followed the market conditions at the time than the vote results.

Key Takeaways

• Bitcoin fell about 6% to US$75,700 on November 5, 2026, after briefly trading above US$80,000, driven by selling in technology and AI stocks.
• In the 30 days after the election, BTC fell about 45% in 2018 and 16% in 2022, but rose in 2016, 2020, and 2024.
• High leverage, macro pressure, and uncertainty over the Clarity Act also shaped the price direction.

What Is the History of Bitcoin After US Elections?

Data from CryptoTicker measures Bitcoin's price change 30 days after US elections, calculated from the close before election day:

• 2016 presidential election: +9.6%, the start of the 2017 rally
• 2018 midterms: −45.2%, during the crypto winter and the Bitcoin Cash split
• 2020 presidential election: +43.5%, in the pandemic money-printing era
• 2022 midterms: −16.4%, as the FTX exchange collapsed in election week
• 2024 presidential election: +42.4%, driven by Trump's crypto agenda

Both declines occurred in midterm elections, but the trigger was not the election itself. CryptoTicker concludes that vote results rarely move Bitcoin as much as market conditions do.

For the long term, Benzinga cites Binance data noting BTC rose 24.5% one year after the 2014 midterms, 44.9% after 2018, and 92.3% after 2022. However, three samples are not enough to call it a guarantee.

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Read Also: Does the US Midterm Election Affect the Bitcoin (BTC) Price?

What Caused the Bitcoin Dump After the 2026 Election?

According to The Block, BTC briefly rose above US$80,000 on Wednesday (November 4) after Democrats won both chambers of Congress and concerns over the Binance hack eased. The rally did not last. 

On Thursday, the sell-off in technology and AI stocks on Wall Street spread to crypto. At 2:00 p.m. ET, the Nasdaq was down 4.7%, the Dow and S&P 500 about 3%, while the VIX volatility index surged about 60%.

Crypto-related stocks also came under pressure. Strategy and Coinbase fell about 10%. Citing CoinMarketCap data, Yahoo Finance reported that global crypto market capitalization shrank 5%, or about US$370 billion.

Leverage worsened the pressure. According to Yahoo Finance, K33 had previously warned that thin trading volume and increased use of leverage made Bitcoin prone to sharp swings. 

Citing CoinGlass data, The Block recorded 24-hour liquidations of about US$1.09 billion affecting about 211,000 traders. In just four hours, US$879.92 million in positions were liquidated, and US$818.90 million of that was long positions. This figure comes from public data and may be lower than reality.

Wintermute viewed Wednesday's rally as more like temporary optimism. Relief after the Binance hack, euphoria over the election result, hopes that AI spending would slow, and lower oil prices did not change the macro pressure that remains. 

According to The Block, Wintermute OTC trader Jasper De Maere said Trump still has two years left in office, the Middle East conflict is heating up, and inflation is high amid a strong US economy.

The market is also still fragile. 21Shares noted Bitcoin closed down 7.3% in October, with the US$6.3 billion Binance hack at the end of the month as one trigger.

Read Also: Binance Hack Chronology: Lazarus Group and the Largest Crypto Theft in History

What Is the Election's Impact on Crypto Regulation?

Election results still influence regulation. Yahoo Finance reported that Brian Gardner, chief Washington policy strategist at Stifel, called the Clarity Act "off the table" for the lame-duck session and judged the chances of a bipartisan compromise in the next Congress to be low. 

Gardner also expects Elizabeth Warren, who is said to be set to lead the Senate Banking Committee, to investigate crypto companies together with Wall Street banks and private equity firms.

Another view also emerged. Yahoo Finance noted that Sean Farrell of Fundstrat believes a Democratic victory could strengthen Bitcoin's appeal as a hedge against the federal deficit. 

According to The Block, Ryan Kirkley of Global Settlement Network believes the election may delay legislation but will not change long-term institutional demand.

If pressure continues, Wintermute is watching the US$73,000 and US$68,000 levels. They would only turn more positive if Bitcoin breaks back above and holds US$80,000.

Conclusion

The Bitcoin dump after the 2026 US election is better read as a reversal of a brief rally. Technology stock selling, high leverage, and macro pressure worked together, while the election added regulatory uncertainty. History shows the 30-day price direction after elections is inconsistent, so market conditions and key price levels remain the best reference.

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FAQ

1. Why is Bitcoin down today?
In the latest data referenced by this article (Thursday, 11/5/2026), BTC fell about 6% because a sell-off in technology and AI stocks dragged down risk assets. Prices move quickly, so check the latest conditions on Bittime before making a decision.

2. Does Bitcoin always fall after US elections?
No. Data from CryptoTicker shows BTC rose in the 30 days after the 2016, 2020, and 2024 elections, and fell after the 2018 and 2022 elections.

3. Did the Binance hack affect the Bitcoin price?
 The Block noted that among the 10 largest crypto hacks, BTC rose in the following 30 days in five cases and fell in five. The roughly 4% decline after the Binance attack was in line with other risk assets.

4. Is now the right time to buy Bitcoin?
There is no certain answer. The pattern of gains 12 months after midterms has only been tested three times, while volatility is currently high. Adjust to your risk profile and do not use emergency funds. This is not financial advice.