Cryptocurrencies staged a recovery, clawing back a portion of the losses they initially suffered following the Democrats’ gains in both chambers of the U.S. Congress during the midterm elections. In a notable sign of the rebound, Bitcoin climbed 3.4%, surging past the $80,000 mark to reach $80,380. The election outcome could prove to be a setback for an industry that has been pushing for faster deregulation of digital assets. While Donald Trump has championed loosening regulatory restrictions, some Democrats have also voiced support for a more flexible approach to crypto market oversight.
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Over $300 million spent on crypto-friendly candidates
According to Reuters, the crypto industry has spent more than $300 million backing candidates from both the Democratic and Republican parties who have shown a friendly stance toward digital assets, across the current and previous election cycles.
Bitcoin, the world’s largest and most widely recognized cryptocurrency, briefly fell to its lowest level in six weeks before staging a recovery and breaking back above the $80,000 threshold.
The rebound coincided with a broader reversal of negative sentiment across stock markets. Major U.S. equity indices climbed more than 2%, recovering from significant overnight losses.
Ether, the second-largest cryptocurrency by market capitalization, also moved higher, jumping 6% to $2,422. Despite today’s recovery, Bitcoin remains approximately 40% below its all-time high of $122,000, recorded in October 2025. According to CoinMarketCap data, the total global cryptocurrency market capitalization now stands at $2.6 trillion.
