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Democrats, who have traditionally favoured tighter oversight of the crypto industry, had been expected to take control of the House of Representatives, a result that is now projected.
PHOTO: REUTERS
Published Nov 04, 2026, 02:35 PM
Updated Nov 04, 2026, 02:35 PM
- Bitcoin fell to a seven-week low as early US election results pointed to a possible Democratic sweep of Congress, raising fears of a tougher crypto agenda and political gridlock.
- Democrats are projected to control the House and Senate, which could stall industry-backed bills like the Clarity Act and bring more scrutiny for digital-asset firms.
- Crypto markets are also under pressure from a US$6.3 billion Binance hack, weak retail demand, and heavy ETF outflows, while traders buy more downside protection.
AI generated
WASHINGTON – Bitcoin fell to a seven-week low as the prospect of a Democratic sweep of the US Congress began showing up in early US midterm election results, adding political uncertainty to a market already struggling with fragile investor appetite.
The original cryptocurrency slid as much as 2.8% to 75,630.57 in Asia trading on Nov 4, its lowest level since Sept 17.
It pared some losses to trade around US$76,600 (S$98,000) as of 12.20pm in Singapore.
The move followed declines in US stock futures and the dollar, while Treasuries gained, reflecting expectations that Democratic control of Congress could lead to gridlock in Washington.
“Markets react to change, and a blue flip will likely introduce additional scepticism given the party’s historically choke-point stance toward crypto,” said Daniel Reis-Faria, chief executive officer of ZeroStack. “I expect that uncertainty to be temporary.”
Major cryptocurrencies began sliding as initial vote counts came in.
Democrats, who have traditionally favoured tighter oversight of the crypto industry, had been expected to take control of the House of Representatives, a result that is now projected.
They are also projected to take control of the US Senate.
The digital-asset industry has poured money into shaping the political landscape since Trump ran for a second presidential term in 2024.
Crypto companies contributed US$189 million to political action committees in the 2026 midterm cycle through the first quarter – more than a third of election spending, according to the consumer rights advocacy group Public Citizen.
For investors, the immediate concern is that a Democratic takeover could stall industry-backed legislation and bring tougher scrutiny of digital-asset firms.
The broader macroeconomic implications are less clear.
Political stalemate could limit further fiscal stimulus and weigh on speculative assets, though lower Treasury yields could eventually provide support by easing financial conditions.
Market malaise
For now, Bitcoin trading offers limited utility as a gauge of broader market sentiment.
Crypto has been grappling with the fallout from a US$6.3 billion hack of largest exchange Binance last week and diminished retail enthusiasm amid the artificial intelligence boom.
Those pressures make it harder to separate the macro-driven market moves from industry-specific issues already weighing on digital assets.
“Overall sentiment in crypto is near-term moderate fear and long-term uncertainty,” said Damien Loh, chief investment officer at Ericsenz Capital.
“Near-term fear because it is still tracking overall risk assets, and with the tech selloff and potentially a restart to the war in the Middle East that is causing some downward pressure.”
Democratic control of the Senate, in addition to the House, would put Congress at odds with US President Donald Trump’s Republican White House.
The Trump family’s financial gains from its crypto ventures became a contentious issue in 2026, helping derail a regulatory bill seen as critical to the industry.
“With the Clarity Act already stalled in the Senate, a change in committee control would most likely mean renegotiation rather than a quick revival, and markets had largely priced that in,” said Rachael Lucas, an analyst at BTC Markets.
Bitcoin is down roughly 6% from the high on Oct 29, before the Binance hack.
More than US$1 billion flowed out of US-listed spot Bitcoin exchange-traded funds on Oct 30 and Nov 2.
Options markets continued to show demand for downside protection across maturities, even as open interest remains tilted toward calls, or the right to buy Bitcoin, in several of the largest expiries.
“As a Democratic sweep became more likely, clients shifted from buying upside calls to downside puts,” said Sean McNulty, a derivatives trader at market maker AQC Tech.
“Attention is shifting back to interest rates and currencies, which is also driving Bitcoin’s decline today.” BLOOMBERG
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US midterm elections
Cryptocurrencies
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