Bitcoin slid, dropping more than 2 percent to reach its lowest level since August, as post-election political shifts triggered a broader pullback across digital asset markets.
The world’s largest cryptocurrency fell sharply late Sunday night following the U.S. midterm elections, according to a report by Reuters cited by Zoom Bangla News. Ether dropped nearly 5 percent, also marking its weakest position since August.
Investors responded to growing concerns that increased Democratic influence in Congress could lead to stricter federal oversight of digital assets. Market participants grew wary of potential new restrictions on cryptocurrency trading, investments, and overall market operations.
Political uncertainty coincides with lingering market anxiety from earlier exchange security incidents, including a major asset breach at Binance. Market pressures intensified as several political figures known for critical views on cryptocurrencies secured legislative positions.
Earlier trading sessions experienced heavy leverage stress, with Bitstamp recording a drop to $75,463 for Bitcoin amid widespread equity and technology stock liquidations, KuCoin reported. Tensions across global energy and financial sectors further amplified risk aversion, with WTI crude oil climbing above $90 per barrel and Brent moving toward $97 per barrel.
Market analyst Benjamin Cowen noted that fourth-quarter equity corrections have historically driven similar downturns for Bitcoin, comparing the movement to the patterns seen in 2014, 2018, and 2022. Cowen pointed out that the S&P 500 fell roughly 4 percent during comparable historical windows, while the Russell index lost 11 to 12 percent and the Dow dropped about 7 percent.
He also noted that the Nasdaq fell nearly 5 percent over four consecutive weeks of declines, which included a 5.5 percent drop on November 5, while share prices in late 2018 fell by 23 percent.