Bitcoin firms to $80.5k as U.S. elections buoy risk appetite, but outlook unclear
Bitcoin rose on Thursday, extending overnight gains after a U.S. Democrat sweep in the midterm elections sparked a broad rally across risk-driven assets.
But the world’s largest crypto still remained well below recent peaks, as traders fretted over the regulatory outlook under a Democrat-controlled Congress– an environment that has historically provided much scrutiny for crypto.
Bitcoin rose 3.6% to $80,543.2 by 00:40 ET (04:40 GMT), rebounding from lows of near $75,000 hit earlier this week. Broader cryptocurrency prices also rebounded.
A weaker dollar and softer Treasury yields also aided crypto prices, as did a sharp drop in oil prices, amid growing hopes that Congress will now pressure the White House into ending the war with Iran.
Bitcoin rebounds on U.S. midterm cheer, but risks loom
Crypto prices rose amid a broader advance in risk-driven assets, as the Democrat majority in both chambers of Congress cleared a major point of uncertainty for markets.
Markets were also encouraged by U.S. President Donald Trump stating he will accept the election results and work with the Democrats.
But a Democrat-led Congress has historically subjected crypto to more regulatory scrutiny. The Democrats were instrumental in blocking a key regulatory bill– the Clarity Act– earlier this year.
While not all Democrat lawmakers are anti-crypto, a large portion of them have expressed skepticism towards the industry, and have also called for tougher money laundering and risk-management regulations for the industry.
The Democrat sweep also raised questions about any future crypto legislation, given that a bulk of measures have been largely Republican-backed.
This notion limited Bitcoin’s overall recovery.
Riot Platforms sells 79% of Bitcoin holdings in Q3
Adding to pressure on Bitcoin, major miner Riot Platforms (NASDAQ:RIOT) disclosed on Wednesday that it sold 10,599 Bitcoin in the September quarter, slashing its holdings to just 2,418 coins.
The sale was aimed primarily at funding Riot’s ongoing pivot into artificial intelligence, but raised questions over whether Bitcoin mining was even profitable anymore– a scenario that bodes poorly for the broader sector.
Still, Riot’s sales came amid a Bitcoin rally in the third quarter, which likely helped absorb a bulk of its selling. The world’s largest crypto surged some 43% in Q3, aided chiefly by bargain buying after sustained losses this year.
Crypto price today: altcoins rebound with Bitcoin
Broader crypto prices advanced on Thursday, largely tracking a rebound in Bitcoin after a difficult October.
World no.2 crypto Ether rose 5.6% to $2,420.54, while XRP rose 2.3%.
Solana and Cardano added over 3% each, while BNB firmed 2%.
Dogecoin added 2.3%.
$TRUMP– the president’s memecoin– was a major outlier, sliding 17.2% on Thursday after clocking deep losses in the wake of the midterm elections.
