Democrats Take Control of Congress, BTC Crashes to $7.56K

According to Woofun AI, after the US midterm elections, the Democratic Party took control of both houses of Congress and the governor of Texas, triggering market concerns about the tightening of artificial intelligence regulations and the investigation of the Trump family's business transactions, which directly caused the BTC price to plummet from above $88,000 to $75,642, erasing previous gains.

The worsening macroeconomic sentiment quickly spread to the tech and crypto sectors. Weak expectations from Qualcomm (QCOM.US) caused the Philadelphia Semiconductor Index to plummet 10%, the Nasdaq Composite Index fell 5.10%, the S&P 500 fell 3.43%, the Dow Jones Industrial Average fell 2.41%, and the NASDAQ index fell more than 10% from the previous month's high.

According to data compiled by Woofun AI, Bernstein cut the target share prices of 7 crypto mining companies with AI data centers by up to 54% due to the uncertain situation in Texas; the shares of Kiel Infrastructure Company and BTDR.US (BTDR.US), which transformed AI computing, fell by about 20%, and the stock prices of Coinbase (COIN.US) and Strategy (MSTR.US), which hold large amounts of BTC, fell by about 10%. Institutional broker FalconX's Joshua Lim pointed out that concerns about delays in data center construction have triggered a new wave of sell-offs. According to CoinGlass data, the 24-hour compulsory liquidation amount reached 1.03 billion US dollars (about 162.5 billion yen), the highest since late October, affecting a total of 198,192 investors.

Major market maker Wintermute determined that if the decline continues, $73,000 and $68,000 may be key support. Unless BTC clearly rebounds and stabilizes above $80,000, the market will not turn bullish. Compared to trading director Jasper de Maier, the medium-term outlook is still optimistic, despite the sharp decline in AI stocks, the performance of crypto assets is relatively steady.