Advertisement
Bitcoin Reclaims US$80K as Markets Digest Democratic Midterm Sweep
- Bitcoin recovered from US$75,956 to US$80,339, gaining 3.13% over 24 hours as Democrats secured control of both chambers of Congress.
- Ripple executives called for bipartisan crypto regulation, while commentators suggested hopes of easing Middle East tensions and lower oil prices helped sentiment.
- Glassnode said Bitcoin had absorbed the Binance hack without widespread panic, although weak institutional demand remained a concern.
- US spot Bitcoin ETFs recorded US$74.6 million in net inflows after three days of losses, led by Fidelity’s FBTC despite continued withdrawals from BlackRock’s IBIT.
After yesterday’s tumble to US$75,956 (AU$108,363), Bitcoin (BTC) has been digesting the US midterm election news and has regained some strength. At the time of writing, BTC trades for US$80,339 (AU$114,611), up 3.13% over the past day.
While some votes are still outstanding in the US midterm election, the Democratic Party has gained control of both the House and Senate. Some in crypto fear that the Democrats may subject the crypto sector to greater scrutiny.
Others, like Ripple’s Chief Legal Officer Stuart Alderoty, called for a more balanced tone and said the “facts are far more nuanced”.
Fairshake secured meaningful wins in both the primaries and the general election, and early Stand With Crypto data shows a substantial number of pro-crypto members elected across both parties.
Ripple Chief Legal Officer Stuart Alderoty Ripple CEO Brad Garlinghouse chimed in, saying “Americans using crypto aren’t going anywhere” and calling for clearer regulation.
New Congress, with the same mission: clear rules, built in America.
Ripple CEO Brad Garlinghouse Why is Crypto Rebounding?
Crypto commentator Virtual Bacon argued that oil prices had come down as hopes increased that a Democratic Congress would be able to end the Iran war. This could mean energy prices and inflation would come down, a bullish sign for Bitcoin, he added.
US West Texas Intermediate (WTI) crude oil traded around US$87 on Thursday afternoon Australian time.
Related: CZ Urges Greater Crypto Security Cooperation Following Binance Hack
Crypto also just came through the largest exchange hack in history, which put downward pressure on prices. According to Glassnode’s most recent report, the market has absorbed the hack, and the researchers cited the lack of panic as a good sign for crypto.
Bitcoin dipped about 3% in the days that followed and is now back near the price at which the outflows began. A muted reaction to news this bad is a sign of strength.
Glassnode ETF Demand Remains Low
The report also stressed that with ETF demand down, there was still a “lack of new demand from outside crypto”. The researchers wrote that once outside demand returns, “a market that has already absorbed a shock of this size has room to move quickly”.
The latest data from Farside shows a moderate rebound during yesterday’s trading session for the US spot Bitcoin ETFs.
Advertisement
After three consecutive days of net outflows totalling US$1.16 billion (AU$1.64 billion), Wednesday’s figures show US$74.6 million (AU$106.4 million) in net inflows.
However, the picture is slightly skewed by the performance of BlackRock’s fund. The largest Bitcoin ETF, IBIT, has now seen four consecutive days of net outflows of US$935.2 million (AU$1.33 billion).
Yesterday’s positive net flows stemmed largely from Fidelity’s FBTC – the fund saw US$236.7 million (AU$337.5 million) in net inflows and is on a three-day net inflow streak.
Read also: Citadel Securities-Backed Group Sues CFTC Over Expansion of Crypto-Style Perpetual Futures
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
