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 Asia trading, its lowest level since September 17. By 12:20pm in Singapore, it had recovered slightly to trade around US$76,600.
The decline followed broader market weakness, with US stock futures and the dollar also falling, while Treasuries gained. Investors fear that Democratic control of Congress could lead to gridlock in Washington, which has historically been skeptical of the crypto industry. "Markets react to change, and a blue flip will likely introduce additional scepticism given the party’s historically choke point stance towards crypto," said Daniel Reis-Faria, chief executive of ZeroStack.
The crypto industry has been actively involved in US politics, contributing US$189 million to political action committees in the 2026 midterm cycle. A Democratic victory could stall industry-backed legislation and increase scrutiny of digital asset firms. The broader economic impact remains uncertain, with potential fiscal stimulus limitations weighing on speculative assets, though lower Treasury yields could offer some support.
Bitcoin's recent struggles are not solely tied to political uncertainty. The cryptocurrency has been grappling with the fallout from a US$6.3 billion hack of Binance last week and waning retail interest amid the artificial intelligence boom. Damien Loh, chief investment officer at Ericsenz Capital, noted that overall sentiment in crypto is "near-term moderate fear and long-term uncertainty."