Markets Rebound as the Sweep Gets Priced In: Futures Pare Losses, Bitcoin Tops $78,000

Global markets rebounded in Asian afternoon trading on Wednesday, November 4, 2026, after Democrats secured control of both chambers of Congress in the U.S. midterm elections. Nasdaq 100 futures narrowed their loss to 0.4% after falling more than 2.2% earlier, Bitcoin rose back above $78,000, and China's STAR 50 index surged more than 5% as the result investors had feared most was priced in.

What happened

The reversal came hours after a sharp overnight selloff. As early returns pointed to a Democratic sweep, Nasdaq 100 futures fell about 2.1% to 2.3%, S&P 500 futures fell about 1.3%, and Bitcoin sank to about $75,700, according to CoinDesk. By the Asian afternoon, that picture had changed. Lookonchain reported Nasdaq 100 futures down just 0.4%, S&P 500 futures down 0.43% and Dow futures down 0.24%, with Bitcoin at $78,006 and Ethereum back above $2,300 at $2,301.

The political result behind the move hardened at the same time. Democrats secured control of the Senate after flipping six Republican seats in Texas, Kansas, South Carolina, North Carolina, Ohio and Iowa, according to the Associated Press reporting cited by CoinTurk. A seventh gain followed in Maine, where Republican incumbent Susan Collins conceded to Democrat Troy Jackson. In Texas, Democrat James Talarico defeated Ken Paxton to become the first Democrat elected to the U.S. Senate from Texas since 1988. Lookonchain also reported Democrats had secured 218 House seats, the number needed for control of that chamber.

Why it is blowing up

The rebound is a classic priced-in reversal. Prediction markets had leaned toward a Democratic victory for days, so the overnight drop was traders reacting to confirmation, not to a complete surprise. Bitcoin.com News noted that both Kalshi and Polymarket traders had been favouring a Democratic sweep before the vote, and that Bitcoin fell from about $77,970 to $75,740 overnight before recovering toward $77,300 and then higher. Once the House and Senate calls were in, there was no new negative headline left to sell, and losses narrowed quickly.

Asia led the turn. South Korea's KOSPI turned positive, erasing an earlier drop of up to 4%, Lookonchain reported. Hong Kong's Hang Seng Index rose 0.81%, with the Hang Seng Tech Index turning positive and chipmaker SMIC leading its components. In mainland China, the STAR 50 extended its afternoon rally to more than 5% and the ChiNext gained more than 4%. Several STAR Market semiconductor ETFs jumped more than 10%, with Naura Technology peers North Huachuang and Tuojing Technology each rising more than 10% in the semiconductor surge.

Key facts

Futures: Nasdaq 100 futures narrowed to -0.4% from an earlier fall of more than 2.2%; S&P 500 futures were -0.43% and Dow futures -0.24% in the afternoon update.

Crypto: Bitcoin rebounded from about $75,700 overnight to $77,500 and then above $78,000 at $78,006, CoinTurk and Lookonchain reported. Ethereum rose above $2,300.

Precious metals: Spot gold extended its intraday gain to about 1%, breaking above $3,970 an ounce and reaching $3,974 in CoinTurk's reporting, helped by a weaker dollar and falling U.S. Treasury yields. Spot silver rose more than 2% to $50.79.

Bonds: The 10-year Treasury yield had slid about six basis points to 4.90% during the overnight selloff, CoinDesk reported, as investors moved into Treasuries.

Regulation watch: Crypto traders are watching whether the CLARITY Act, a stalled bill to set rules for U.S. crypto markets, returns to the agenda under the new Senate, CoinTurk and CoinDesk both reported.

What is next

The next test is the U.S. cash open on Wednesday. Futures paring losses in thin Asian trading does not guarantee the open will hold, especially after the Nasdaq-100 entered a correction earlier this week and AI and data-centre stocks remain under political scrutiny. Investors will also watch Treasury yields and the dollar: if yields keep falling, the argument that a Democratic Congress lowers the odds of further rate hikes gains traction; if they reverse, the rebound could fade just as fast. For now, the story of the hour is not the sweep itself, but how quickly markets stopped selling it.

FAQ

Why did markets rebound after Democrats won both chambers?
Because the result had been widely expected in prediction markets. Once the sweep was confirmed, traders treated the bad news as priced in and covered earlier selling.

How much did Nasdaq futures recover?
Nasdaq 100 futures narrowed their loss to 0.4% in Asian afternoon trading, after falling more than 2.2% earlier in the session.

What happened to Bitcoin and gold?
Bitcoin fell to about $75,700 overnight, then rebounded above $78,000. Gold rose about 1% to above $3,970 an ounce, supported by a weaker dollar and lower Treasury yields.

Which Asian markets rebounded most?
China's STAR 50 rose more than 5% and the ChiNext more than 4%, Hong Kong's Hang Seng rose 0.81%, and South Korea's KOSPI turned positive after erasing an earlier drop of up to 4%.

Sources: Lookonchain, CoinTurk, CoinDesk, Bitcoin.com News.