Bitcoin dropped on Monday, continuing its decline from last week as regulatory concerns in the U.S. grew following the Democratic Party's sweep of Congress. The uncertainty dampened investor appetite for cryptocurrencies, leading to significant outflows from spot Bitcoin exchange-traded funds (ETFs).
Bitcoin fell 1.9% to $74,392.2 by 01:19 ET (06:19 GMT), marking a 2% loss over the past week. The initial optimism surrounding the Democratic victory quickly faded as questions arose about stricter regulatory oversight under a Democrat-led Congress.
Senator Elizabeth Warren, a vocal critic of cryptocurrencies, is expected to lead the Senate Banking Committee, which could intensify scrutiny on the crypto industry. Several Democrats have called for tighter anti-money laundering and risk management rules, raising concerns among investors.
The Democratic win also cast doubt on the future of pro-crypto legislation, as previous crypto acts were primarily Republican-backed. Spot Bitcoin ETFs experienced their worst weekly outflows since June, with $1.28 billion exiting last week, according to data from SoSoValue.
Broader crypto markets also declined, with Ethereum falling 5.2% to $2,118.0, and Solana dropping 6.4%, nearing a fall below $1. Other major cryptocurrencies like Cardano and Polkadot each lost 3%, while Dogecoin and Shiba Inu both fell 3.3% but remained above record lows hit last week.