Bitcoin falls to six-week low as Democrats win US Congress, raising concerns over crypto regulation | Hindustan Times

Bitcoin briefly fell to its lowest level in six weeks on Wednesday as Democrats won control of both the US Senate and the House of Representatives in the midterm elections. The election result has raised concerns about the future of cryptocurrency regulation in the United States.

Bitcoin falls to a six-week low as Democrats win control of the US Congress, raising concerns over cryptocurrency regulation. (Pexel)The Democratic victory could affect the crypto industry's efforts to push for faster regulation and clearer rules for digital assets. The industry has been seeking laws that would give cryptocurrency companies a stronger legal position and help them expand their businesses, Reuters reported.

Crypto companies have spent more than $300 million on election campaigns during the current and previous election cycles. The money was used to support crypto-friendly candidates from both the Republican and Democratic parties in roughly equal amounts, according to Reuters.

The industry had hoped that candidates supported by crypto donors would help pass legislation favourable to digital assets. Such laws were expected to provide US crypto companies with greater legal clarity and support the industry's growth.

Bitcoin briefly touched a six-week low before recovering some of its losses. It was trading almost flat at around $78,070 at 0715 GMT on Wednesday, Reuters reported.

Ether, the world's second-largest cryptocurrency, was trading at $2,292, up around 1% at the time.

Bitcoin has lost around 41% of its value since October 2025, when it reached record highs above $122,000. The decline has also reduced the total value of the broader cryptocurrency market to around $2.61 trillion, according to CoinMarketCap.

The cryptocurrency market has lost around $300 billion in value in the past month alone. Investors have increasingly moved their money into safer assets, including government bonds and safe-haven currencies.

This shift comes as investors grow more concerned about the future returns from artificial intelligence (AI) investments. Rising borrowing costs have also added pressure on riskier investments such as cryptocurrencies.

A $6 billion hack of Binance has added to concerns about the crypto market. The security breach took place last week and was described as the largest cryptocurrency heist in history, Reuters reported.

Binance customers withdrew a net $4.72 billion from the cryptocurrency exchange after it reopened following the hack over the weekend. The withdrawals were recorded by Tuesday, November 3, according to Reuters.

The large withdrawals have raised further questions about the safety of cryptocurrency exchanges and the protection of customers' digital assets.

Tim Sun, senior researcher at HashKey, said investors may be reassessing the risks and potential returns from cryptocurrencies. He said repeated security incidents were forcing investors to take another look at the industry's security systems and the risks involved in holding digital assets through exchanges and other platforms, according to Reuters.

Sun also warned that changes in the US political landscape could slow progress on cryptocurrency legislation. He said this could affect the development of a stronger legal and institutional framework for the industry. He added that security concerns and uncertainty over future US regulations were creating strong challenges for the cryptocurrency market.

US President Donald Trump had promised to make the United States the 'crypto capital of the world' during his 2024 presidential campaign. Since returning to office, he has also entered the digital asset industry through several ventures.

These include the launch of his own cryptocurrency, the Trump meme coin, and his family's World Liberty Financial crypto platform.

The cryptocurrency industry has seen several major policy changes since Trump returned to the White House nearly two years ago. His administration has introduced lighter enforcement measures and created a strategic Bitcoin reserve, according to Reuters.

The US government has also made it easier for cryptocurrency companies to access banking services and for investors to access crypto-related exchange-traded products (ETPs).

Washington has also passed a federal law governing stablecoins. Stablecoins are cryptocurrencies designed to maintain a stable value, usually by being linked to traditional currencies such as the US dollar.

The new stablecoin law could help these digital assets become more widely used in mainstream payment systems and money transfers, according to Reuters.

However, Democrats taking control of both chambers of Congress could create uncertainty over the future of the industry's legislative plans. Crypto companies had been hoping for continued progress on laws that would provide clearer rules for digital assets.

The election result, combined with the recent Binance hack, falling cryptocurrency prices and concerns about investment returns, has added to the pressure on the digital asset market.

Durva More is a Senior Content Producer at Hindustan Times, where she covers finance, and global news. She brings experience across digital and television journalism, with a strong focus on breaking news, business reporting, and international affairs. Before joining Hindustan Times, Durva worked as an International News Writer at The Economic Times, covering a diverse range of subjects including global politics, business, sports, entertainment, and major world events. She also worked as a Business Reporter with NDTV Profit. A postgraduate diploma holder in Journalism from the Asian College of Journalism, Durva is passionate about field reporting and storytelling. She thrives on the adrenaline of chasing stories, speaking with people from different walks of life, and amplifying voices that deserve to be heard. Her reporting is driven by curiosity, accuracy, and a commitment to making complex subjects accessible to readers. When she is not chasing stories or covering breaking news, Durva enjoys reading books and painting. She loves exploring new ideas, meeting people, and learning about different perspectives. For her, both journalism and art are ways to understand the world and tell stories that matter.Read More