In brief – Bitcoin is up 1.6% to $78,277 after a brief dip, after the Democrats took both the House and the Senate. – Analysts say the result was priced in, but it raises fresh uncertainty for the stalled Clarity Act and future pro-crypto policy. – Crypto policy didn’t decide…
e vote, one expert said, but the industry now carries “baggage” from President Trump’s activity. Democrats flipped both the House of Representatives and the Senate in the U.S. midterms, handing President Donald Trump a major political setback
Experts say this was not the “preferred outcome” for crypto markets and that it has increased “uncertainty” for future pro-crypto policy. However, after a brief dip, Bitcoin is up 1.6% over the past 24 hours and now sits at $78,277, per Decrypt data. Broadly, almost every top 100 crypto token by market cap is in the green for the day. “I think the Democratic sweep was largely priced in going into the midterms,” André Dragosch, head of research at Bitwise Europe, told Decrypt. “The downside risks were fairly limited going into these midterms as sentiment was already very bearish and there were already signs of seller exhaustion again.
So, it is no surprise that we have seen this kind of V-shaped recovery on an intraday basis during the midterms.” Polymarket put odds of the Democratic Party sweeping both the House and Senate during the midterms at 65.5% at the start of the week. Dragosch said these odds meant that markets weren’t shocked by Tuesday’s results. James Butterfill, head of research at CoinShares, agreed. “My sense is that Bitcoin had largely priced in a Democratic sweep, leaving room for a relief rally as uncertainty clears,” he said in comments shared with Decrypt. “Therefore, the anticipated result need not trigger another sell-off.” “Crypto policy did not decide the midterms.