Bitcoin plummeted by $2,000 in anticipation of Democratic victory

According to Woofun AI, the preliminary results of the US midterm elections suggest that the Democratic Party may control Congress. This political expectation directly impacted the crypto market, causing Bitcoin prices to fluctuate sharply, once falling to $75,700, then rebounding to around $76,700 after the opening of the Asian market.

Bitcoin surged to close to $78,000 during voter voting on Tuesday evening, but as the first batch of election results came out, the price quickly fell back more than $2,000, creating a significant spread. According to data compiled by Woofun AI, the performance of major assets is divided: ZEC rebounded about 5% after falling 10% on Tuesday, and is currently the strongest performer; XRP rose 1% to $1.27; the price of Ethereum, HYPE, and Wave Field remained almost flat, with Ethereum at around $2,260; SOL fell about 1% to just under $92; Binance Coin performed the worst, falling more than 1% to about $689. In traditional markets, S&P 500 futures fell about 1.1%, reversing the previous 0.5% increase, NASDAQ 100 futures fell about 2%, and the MSCI Asia Pacific Index fell nearly 2%. The dollar depreciated against major currencies, and the 10-year US Treasury yield fell 6 basis points to 4.90%.

The market is worried that the Democratic Party's victory will bring stricter technology and AI regulations and be bad for the stock market and the US dollar. If the political impasse impedes tax cuts and spending, the price of US bonds may rise as debt concerns ease. The cryptocurrency industry is also facing regulatory uncertainty, with BTSE chief operating officer Jeff May pointing out that the Democratic Party opposes a “clear bill” setting out the rules of the market. As the vote count continues, US stock futures are still showing a sharp downward trend, and the impact of political results on asset pricing is deepening.