Bitcoin rose after a Democrat sweep in the U.S. midterm elections lifted risk-driven assets, but it stayed well below recent peaks. Traders worry about regulation under a Democrat-controlled Congress, and Riot Platforms sold most of its Bitcoin holdings in Q3.
Bitcoin rose 3.6% to $80,543.2 on Thursday, rebounding from lows of near $75,000 hit earlier this week. The gains extended overnight moves after the Democrat sweep sparked a broad rally across risk-driven assets.
A weaker dollar and softer Treasury yields also aided crypto prices. A sharp drop in oil prices helped too, amid growing hopes that Congress will now pressure the White House into ending the war with Iran.
Regulatory worries cap the recovery
However, a Democrat-led Congress has historically subjected crypto to more regulatory scrutiny. Democrats were instrumental in blocking the Clarity Act, a key regulatory bill, earlier this year.
Not all Democrat lawmakers are anti-crypto. Still, a large portion have expressed skepticism towards the industry and called for tougher money laundering and risk-management regulations. The sweep also raised questions about future crypto legislation, because a bulk of measures have been largely Republican-backed, and this notion limited Bitcoin's recovery.
Riot Platforms sells 79% of its Bitcoin
Meanwhile, miner Riot Platforms disclosed on Wednesday that it sold 10,599 Bitcoin in the September quarter, cutting its holdings to 2,418 coins. The sale was aimed primarily at funding its pivot into artificial intelligence, and it raised questions over whether Bitcoin mining is still profitable.
Riot's sales came during a Bitcoin rally, which likely helped absorb a bulk of the selling. Bitcoin surged some 43% in Q3, aided chiefly by bargain buying after sustained losses this year.
Altcoins follow Bitcoin higher
Broader crypto prices largely tracked Bitcoin's rebound. Ether rose 5.6% to $2,420.54, while XRP rose 2.3%.
Solana and Cardano added over 3% each, and BNB firmed 2%. The $TRUMP memecoin was an outlier, sliding 17.2% after deep losses following the midterm elections.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
