Bitcoin traded near $78,300 on Wednesday morning after Democrats won control of the House and the Senate in the midterm elections. The market first fell to $75,618 before recovering the loss, with investors treating the result as a political risk that had largely been priced in. U.S. spot bitcoin ETFs nevertheless recorded about $1.16 billion in outflows over three sessions, while the price remains roughly 27% below its level a year earlier. The results included the defeat of several Republican allies of the crypto industry, James Talarico’s Senate victory in Texas and the prospect that the CLARITY Act may not pass before the current session ends. Democrats will also take control of key banking and financial committees, making crypto legislation more difficult, although presidential vetoes and executive orders could limit the immediate impact. Trump’s ability to appoint nominees to the SEC and CFTC will also be constrained, while the GENIUS Act signed in 2025 will still take effect on January 18.
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