American Bitcoin Corp. (NASDAQ:ABTC) co-founder Eric Trump said on Wednesday that Bitcoin’s (CRYPTO: BTC) latest spike reflected the new reality of a “split government” after Democrats won both chambers of Congress.
Midterm Results a Bullish Catalyst for BTC?
Bitcoin rose sharply from $77,000 to slightly above $81,000 as Democrats decisively won the midterm elections
During American Bitcoin’s third-quarter earnings call, Trump likened the sharp move to shifting congressional control and the resulting political uncertainty.
“I think factoring in that maybe with a split government, with the House and Senate obviously different from the executive branch, it’s actually almost like a flight to security,” he argued. “So obviously government and obviously politics weigh in on this in some way, shape or form.”
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Schiff Labels Rally ‘Irrational’
Economist Peter Schiff, however, called the rally “the most irrational” market reaction to the Democratic sweep, arguing a future Democratic White House would sell the entire Strategic Bitcoin Reserve.
Notably, Bitwise’s Ryan Rasmussen said the election has limited long-term impact as the regulators currently pushing pro-cryptocurrency policy remain in place regardless of Tuesday’s outcome.
American Bitcoin Q3 Financials Disappoint
Trump’s remarks came alongside American Bitcoin’s third-quarter financial results, with the company reporting net income of approximately $126 million, compared with $3.5 million in the year-ago quarter. However, the profit was significantly boosted by a $197.34 million gain on digital assets. The company also recorded a $64.28 million loss on derivatives.
Revenue declined 1.35% year-over-year to approximately $63.35 million and below the $74.02 million analysts expected.
The company increased its holdings by 425 Bitcoin in the third quarter, representing a 5% rise.
American Bitcoin currently holds 8,427 BTC, worth $667 million, making it the 13th-largest corporate BTC holder, according to BitcoinTreasuries.net.
Price Action: As of this writing, BTC is up 2.60% in the last 24 hours to $80,370, according to Benzinga Pro.
American Bitcoin shares are up 2.40% in overnight trading after closing 5.60% lower at $6.24 during Wednesday’s regular trading session.
Benzinga’s Edge Stock Rankings indicate that ABTC has underperformed with a weaker price trend across short-, medium-, and long-term timeframes.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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