Bitcoin has kicked off the trading week with a strong recovery, gaining over 3.5% in a single session. This uptick is largely attributed to renewed risk appetite following the U.S. elections and a weakening U.S. dollar, which has been a key alternative market for Bitcoin throughout 2026. The cryptocurrency is now moving back toward the psychological level of $80,000, a threshold that could further bolster buying momentum in the near term.
The U.S. congressional elections have played a significant role in this shift, as markets have begun to move past some of the uncertainty surrounding the electoral process. This has led to a gradual improvement in demand for risk assets like Bitcoin. Simultaneously, the U.S. dollar has entered a phase of weakness, with the DXY Index falling toward the 101-point area. This loss of momentum in the dollar has reduced its appeal as a liquidity haven, allowing Bitcoin to attract renewed investor interest.
Recent liquidation data highlights a notable recovery in market activity, with nearly $200 million in liquidations observed in recent hours. The majority of these liquidations have come from short positions, indicating a return of demand and forcing the closure of bearish bets. The reduction in political uncertainty has also contributed to a more favorable environment for Bitcoin, supporting buying pressure in recent sessions.
The Fear & Greed Index for the cryptocurrency market currently stands near 41 points, returning to a neutral zone after previously dipping into fear territory. This suggests that market confidence is beginning to recover, reflecting an improvement in overall risk perception within the sector. However, it is still premature to confirm a long-term structural recovery, as a more consistent demand environment will be needed before a meaningful shift in the broader trend can be confirmed.