Bitcoin Tops $78,000 After Democrats Win Control of Congress — Update
By Joseph WilkinsBitcoin rose above $78,000 on Wednesday as traders assessed a stunning Democratic win in the U.S. midterm elections.The bellwether cryptocurrency was up 0.6% at $78,294 after the Democrats won control of the Senate and the House, in a rebuke to President Trump's second term.Bitcoin is capturing some momentum from a weaker dollar, which tends to boost cryptocurrencies.Regulation is the point of contention for the crypto industry under the Democrats. The blue victory could spur a negative reaction on perceptions of tougher or slower digital-asset regulation, crypto analysts said.Investors should expect a much more hostile regulatory environment for cryptocurrencies under a Democratic Congress, according to Kyle Rodda at trading platform Capital.com. "Certainly, we won't see as much pro-crypto legislation pass under this Congress," he said. The bitcoin market has responded in muted fashion to the Democrats' sweeping midterms victory, Rodda added.The crypto industry is also seeking permanent legislation that will outlast administrations, so as to attract institutional capital. Institutions need clear, enforceable rules around custody, asset ownership, settlement finality and investor protection before committing significant capital, said Ryan Kirkley, chief executive of Global Settlement Network.Still, the macro backdrop for remains delicate, with U.S. economic data landing later this week potentially holding more sway on the direction of travel for bitcoin in the short term.Renewed escalation in the Middle East revives concerns about energy prices and inflation, pushing yields higher and pressuring risk assets that include cryptocurrencies, said Firas Bechwaty at ICM MENA.Ether was 0.1% higher at $2,294.85.Write to Joseph Wilkins at [email protected]