According to Woofun AI, preliminary results from the U.S. midterm elections suggest that Democrats may take control of Congress, a political expectation that directly hit the crypto market and caused sharp volatility in the Bitcoin price, which at one point fell to $75,700 before recovering to around $76,700 after Asian markets opened.
During voter balloting on Tuesday evening, Bitcoin had climbed to nearly $78,000, but as the first batch of election results came in, the price quickly dropped by more than $2,000, creating a notable spread.
Data compiled by Woofun AI showed mixed performance across major assets: ZEC rebounded about 5% after falling 10% on Tuesday and is now around $1,200, making it the strongest performer; XRP rose 1% to $1.27; Ethereum, HYPE and Tron were nearly flat, with Ethereum around $2,260; SOL fell about 1% to slightly below $92; and Binance Coin was the worst performer, dropping more than 1% to about $689.
In traditional markets, S&P 500 futures fell about 1.1%, erasing an earlier 0.5% gain, Nasdaq 100 futures dropped about 2%, and the MSCI Asia-Pacific index fell nearly 2%.
The dollar weakened against major currencies, while the 10-year U.S. Treasury yield fell 6 basis points to 4.90%.
Markets are concerned that a Democratic victory would bring stricter regulation of technology and AI, weighing on the stock market and the dollar. If political gridlock blocks tax cuts and spending, U.S. Treasury prices could rise as debt concerns ease.
The cryptocurrency industry also faces regulatory uncertainty. BTSE Chief Operating Officer Jeff Mei noted that Democrats oppose the Clarity Act, which would set market rules.
As vote counting continues, U.S. stock futures still point to a sharply lower open, and the impact of political outcomes on asset pricing is deepening.
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