Cryptos rebounded Wednesday after selling that followed Democrats securing control of the House and Senate in the U.S. midterms - a setup investors read as less friendly to quick deregulation. Bitcoin briefly slipped to a six-week low, then turned higher alongside a stock rebound as U.S. index futures rose 0.3% after dropping as much as 2% overnight.
By 08:41 GMT, bitcoin traded at $78,354, up 0.7% on the day, while ether added 1.4% to $2,323. Sol, dogecoin and ada also climbed between 1.6% and 2.2% on Wednesday.
The industry hedged its bets, spending more than $300 million backing crypto-friendly candidates in both parties in roughly equal amounts across this and the prior election cycles.
On the trail in 2024, Trump vowed to turn the United States into the "crypto capital of the world," and he has launched ventures including a "Trump" meme coin plus a crypto platform from his family called World Liberty Financial.
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The backdrop is softer. Bitcoin has dropped about 41% since peaking above $122,000 in October 2025, leaving the total crypto market near $2.61 trillion, per CoinMarketCap. Over the last month alone, around $300 billion in market value evaporated as worries about future AI-driven returns and higher borrowing costs steered money toward safer places like government bonds and haven currencies.
Funds show the stress. Investors pulled $215 million from the biggest bitcoin-backed ETFs in October, bringing year-to-date withdrawals to $1.84 billion, LSEG/Lipper data shows. Then came last week's $6 billion hack of Binance - the largest crypto theft on record - which matched up with the largest weekly net withdrawals from bitcoin ETFs since early July, totaling $884 million. After Binance reopened over the weekend, net customer withdrawals reached $4.72 billion by Tuesday.
"The market may be re-evaluating the risk-reward profile of crypto assets," said Tim Sun, senior researcher at HashKey, pointing to a run of security breaches that has investors rechecking safeguards and custody. He added that possible changes in U.S. politics could slow work on structural crypto laws and institutional frameworks, leaving the market facing strong headwinds.
In plain English: sentiment is fragile. CoinGecko data shows sol, dogecoin and ada have each fallen by almost 25% over the past month, even with today's bounce. Moves are being driven by policy signals, security shocks and rate pressure - three forces that tend to keep volatility high.
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