Bitcoin dropped on Friday, erasing gains from the post-U.S. election rally as concerns over regulatory uncertainty under a Democrat-controlled Congress weighed on markets. The largest cryptocurrency fell 6.3% to $75,565.6 by 01:06 ET (06:06 GMT), heading for a fifth straight week of losses. The broader selloff in risk assets, particularly technology shares, also contributed to the downturn in crypto markets.
The regulatory outlook for Bitcoin has become increasingly uncertain following the midterm elections. Democrats, who have historically been more skeptical of crypto, have opposed key legislation like the Clarity Act and called for stricter anti-money laundering measures. Senator Elizabeth Warren has been a vocal critic, advocating for a crackdown on the sector. Historical data shows Bitcoin lost 43% during the last period of Democrat-led Congress, though that decline was also influenced by rising interest rates and high-profile bankruptcies like Terra, FTX, and Celsius.
Adding to the pressure on Bitcoin, major miner Riot Platforms revealed this week that it sold off most of its Bitcoin holdings in the third quarter. Meanwhile, U.S. President Donald Trump’s memecoin, $TRUMP, slumped to a record low of $1.116 after the Republican party’s losses in the midterm elections. The memecoin has lost about 99% of its value since its launch in early-2025.
Altcoins also faced declines on Friday, with Ethereum falling 8.6% to $2,223.0, while Solana and XRP dropped 8.9% and 3.5%, respectively. Top memecoin Dogecoin fell 6.6% as risk appetite weakened amid a selloff in U.S. tech and artificial intelligence stocks.