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Democrats swept the U.S. midterm elections overnight, winning control of both chambers of Congress and dealing a sharp blow to President Donald Trump and his Republican Party heading into his final two years in office.
Markets have so far staged a classic relief bounce with the election uncertainty out of the way. Bitcoin is trading well above $78,000, up 1.4% since midnight UTC after dipping below $76,000 in Asian trading. Nasdaq futures are up nearly 1% after falling more than 2% earlier, while gold has gained nearly 3%. The Dollar Index is down 0.44%, touching its lowest level since Sept. 29.
Here are early analyst reactions on what a Democratic-controlled Congress could mean for markets and the rest of Trump’s presidency.
Digital asset venture capital firm Tagus Capital
Raj Kamal, founder and CEO of stablecoin payments firm TransFi
Tim Sun, Senior Researcher at Hashkey
Matthew Ryan, head of market strategy at global financial services Ebury
As for price prospects, the focus now shifts to whether the overnight bitcoin rebound can last. Most experts say sustained gains will require consistent inflows into spot ETFs and a decisive break above $82,000. Until then, the recovery warrants caution. Stay alert!
Read more: For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead."
Bitcoin, ether and Nasdaq futures have all chalked out V-shaped recovery rallies from the Asian session lows.
It appears as though the Democratic sweep of Congress was largely expected and priced in.