The Republican defeat in the U.S. midterm elections briefly pushed Bitcoin below $78,000 before it rebounded to roughly $78,500. André Dragosch, head of research at Bitwise, says the outcome was largely anticipated and that the Democratic victory may not necessarily reverse recent regulatory easing. The CLARITY Act, which is intended to clarify the respective responsibilities of the SEC and the CFTC, failed in the Senate by a 50-49 vote and will have to be resubmitted if it is not adopted before January. Bitwise nevertheless expects significant political gridlock in Washington and greater emphasis on fiscal imperatives in U.S. monetary policy. A shift by the Federal Reserve, particularly in response to concerns about artificial intelligence investment, could therefore benefit Bitcoin.
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