Bitcoin Rebounds After Democratic Midterm Sweep, But Crypto Faces Tougher Fight in Washington — SkimNews
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- Bitcoin recovered from a six-week low to trade at $78,354 early Wednesday, briefly surpassing $80,000, as part of a broader market bounce rather than a political rally.
- Ethereum rose 7% to $2,434, outpacing the broader crypto recovery, while U.S. stocks jumped 1.6%, led by a 2.5% gain in the Dow Jones Industrial Average.
- Crypto industry groups spent over $300 million backing candidates across two election cycles, including $176 million in 2024 alone, to advance regulatory legislation like the Clarity Act.
- The Clarity Act failed a key Senate vote in September with a 49-50 tally, falling short of the 60 votes needed to proceed, and now faces steeper odds under full Democratic control.
- Democratic lawmakers cited conflicts over Trump family crypto ventures and stablecoin reward rules as sticking points in negotiations, complicating bipartisan consensus on the bill.
- Bitcoin ETFs recorded $215 million in net withdrawals in October, bringing year-to-date outflows to $1.84 billion, reflecting sustained investor caution despite price rebound.
Why it matters: The Democratic sweep makes reviving the Clarity Act before January 2027 unlikely, forcing the crypto industry to restart its legislative push despite having spent $300 million to shape Congress—meanwhile, ETF outflows show investor skepticism persists even as prices recover.
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