Bitcoin dropped to a seven-week low on Wednesday, November 4, 2026, as early results from the US midterm elections suggested a potential Democratic sweep of Congress. The world's largest cryptocurrency fell as much as 2.8% to US$75,630.57 in Asian trading before recovering slightly to around US$76,600 by midday in Singapore. The decline mirrored broader market movements, with US stock futures and the dollar also slipping, while Treasuries gained.
The prospect of Democratic control of both the House and Senate raised concerns about increased regulatory scrutiny and gridlock in Washington. Daniel Reis-Faria, CEO of ZeroStack, noted that markets react to political changes, and a Democratic flip could introduce skepticism toward crypto. However, he expects any uncertainty to be temporary.
Major cryptocurrencies began sliding as initial vote counts came in, reflecting investor fears that a Democratic takeover could stall industry-backed legislation. The digital asset industry has heavily invested in political influence, contributing US$189 million to political action committees in the 2026 midterm cycle. The broader economic implications remain unclear, with potential fiscal stimulus limitations weighing on speculative assets.
Bitcoin's recent struggles extend beyond political uncertainty, as the crypto market grapples with the fallout from a US$6.3 billion hack of Binance last week and diminished retail interest amid the AI boom. Damien Loh, chief investment officer at Ericsenz Capital, described overall sentiment as 'near-term moderate fear and long-term uncertainty.' Options markets also showed increased demand for downside protection as a Democratic sweep became more likely.