Cryptocurrencies saw a brief dip on November 4 following the Democrats' victory in the US midterm elections, securing majorities in both the Senate and House. The crypto industry, which has invested over US$300 million in supporting crypto-friendly candidates from both parties, now faces uncertainty over potential delays in deregulation and structural legislation.
Bitcoin briefly hit a six-week low before stabilizing at US$78,070 by 07.15 GMT, while Ether traded at US$2,292, up just 1%. The broader crypto market has lost significant value, with Bitcoin down around 41% since its October 2025 peak above US$122,000, and the total market value now at approximately US$2.61 billion.
The market's decline has been exacerbated by a US$6 billion hack on the Binance platform last week, the largest heist in history. Since reopening, Binance customers have withdrawn a net US$4.72 billion from the exchange. Tim Sun, Senior Researcher at HashKey, noted that investors are reassessing the risk-reward profile of crypto assets due to security concerns and potential political shifts.
Former President Trump, who championed crypto during his 2024 campaign, has launched several digital asset ventures, including a meme coin and a crypto platform. Under his administration, the US has seen lighter enforcement, a strategic bitcoin reserve, and easier access to banking and exchange-traded products.