Bitcoin rebounds as Democrats take control of US Congress

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Bitcoin and Ether recovered on Wednesday after an overnight sell-off following the Democrats’ victory in both chambers of the US Congress. The result could complicate the crypto industry’s efforts to secure lighter regulation, although some Democratic lawmakers have also supported a more permissive approach.

Crypto companies and investors have spent more than $300 million backing candidates from both parties during the current and previous election cycles. Bitcoin briefly touched a six-week low before rising 0.7% to $78,354 at 08:41 GMT. Ether gained 1.4% to $2,323, while US stock futures also moved higher.

Bitcoin remains about 41% below its October 2025 peak of more than $122,000. The total crypto market value stands at around $2.61 trillion, down approximately $300 billion over the past month. Concerns about AI investment returns and higher borrowing costs have weighed on riskier assets as investors moved towards government bonds and safe-haven currencies.