Key takeaways
- TRUMP loses 7% following Democratic congressional victories
- WLFI drops 5% while DeFi tokens outperform
- Crypto investors reassess regulation after US midterm elections
The Official Trump (TRUMP) cryptocurrency fell 7.1% on November 4, while World Liberty Financial's WLFI token declined approximately 5%, as Democrats won control of both chambers of Congress in the US midterm elections.
The losses contrasted sharply with a broader cryptocurrency recovery. According to CoinDesk's November 4 market report, its DeFi Select Index climbed approximately 5%, led by Injective and Ethena, while Bitcoin recovered toward $78,300.
The divergence emerged as investors assessed the election outcome and its implications for President Donald Trump's cryptocurrency agenda.
TRUMP and WLFI Fall as Democrats Win Congress
TRUMP dropped approximately 7.1% to $1.47, reducing its reported market capitalization by roughly $40 million during the session. WLFI lost approximately 5%, trading around $0.05 in early market reports.
Both declines coincided with Democrats taking control of the House and Senate, an outcome that could increase scrutiny of Trump's business interests.
The election followed a campaign in which Elon Musk and cryptocurrency groups spent heavily seeking to influence congressional races.
However, the price declines do not establish that election results were their sole cause.
TRUMP remains particularly sensitive to speculative trading and political attention, while its liquidity structure has previously attracted scrutiny.
WLFI faces separate challenges involving token supply, governance and adoption of World Liberty Financial's USD1 stablecoin.
Earlier USD1 redemption activity illustrated how developments within the project can affect investor confidence independently of Washington.
DeFi Altcoins Gain 5% as Bitcoin Recovers
Decentralized finance tokens moved in the opposite direction as cryptocurrency markets recovered from overnight losses.
CoinDesk reported that all seven constituents of its DeFi Select Index advanced, led by Injective (INJ) and Ethena (ENA).
Injective gained approximately 6.2%, while Morpho advanced around 6%. The broader CoinDesk 80 Index rose 2.3%.
The move followed renewed interest in DeFi despite earlier uncertainty surrounding Ethena's token price and whale selling.
Other altcoins also strengthened.
Venice's VVV token gained approximately 17% over 24 hours, while Zcash rose around 12%. NEAR advanced roughly 7%, although its futures open interest increased only 0.35%, suggesting limited growth in outstanding leveraged positions.
Bitcoin meanwhile recovered from approximately $75,600 to $78,300, helping stabilize broader market sentiment.
What the Election Means for Crypto Regulation
The Democratic victory raises fresh questions about the CLARITY Act, which aims to establish clearer boundaries between SEC and CFTC oversight.
The bill previously failed to advance in the Senate following a 49–50 procedural vote in September.
The cryptocurrency industry's $176 million midterm campaign supported candidates from both parties, reflecting the sector's effort to build bipartisan legislative support.
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Marcus Hale
Marcus Hale is a crypto and financial markets writer covering Bitcoin, Ethereum, digital assets, regulation, ETFs, and institutional adoption. His work focuses on market-moving developments, investor trends, and the broader forces shaping the crypto economy.
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