On November 5, Bitcoin extended its overnight gains and reclaimed the $80,000 mark. Democrats won control of both chambers of Congress in the midterm elections, driving a broad rebound in risk assets. As of 14:30 Beijing time, Bitcoin was up 3.6% at $80,543.2, recovering noticeably from a low of around $75,000 touched earlier in the week. A weaker U.S. dollar, falling Treasury yields and declining international oil prices also provided support to the cryptocurrency market. However, Democratic control of both chambers of Congress has also raised concerns about tighter cryptocurrency regulation. Democratic lawmakers had previously blocked progress on the key crypto regulatory bill, the CLARITY Act, and some lawmakers have advocated stronger anti-money laundering and risk management requirements for the industry. Since several existing crypto-related legislative efforts have been driven mainly by Republicans, the shift in congressional control could increase uncertainty over the passage of related bills, thereby limiting Bitcoin's rebound.
Meanwhile, Bitcoin miner Riot Platforms disclosed that it sold 10,599 Bitcoins in the third quarter, about 79% of its original holdings, leaving its remaining holdings at 2,418 coins. The company sold the Bitcoins mainly to support its transition into the artificial intelligence business, but the large-scale sell-off also drew market attention to the profitability of the cryptocurrency mining business. Other cryptocurrencies broadly followed Bitcoin higher, with Ethereum rising 5.6% to $2,420.54, XRP gaining 2.3%, and Solana and Cardano both up more than 3%. However, the Trump-related meme coin $TRUMP fell 17.2% against the trend, extending its decline after the U.S. midterm elections.
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