Bitcoin has fallen to a more than one-month low, as uncertainty regarding U.S. regulatory policy following the midterm elections has prompted traders to steer clear of cryptocurrencies.
Prices for other cryptocurrencies also fell, with markets still reeling from the theft of over $6 billion worth of crypto assets from Binance late last week. This week, Binance began a phased resumption of withdrawals and pledged to reimburse all customer losses.
As of 09:25 Moscow time, Bitcoin was down 2% at $76,565.9. The world’s largest cryptocurrency hit its lowest point since early September, bringing its total decline for October to over 6%.
Bitcoin also faced pressure from a sharp outflow of funds from spot exchange-traded funds (ETFs) on Monday, as institutional investors reacted to the Binance hack.
Further weighing on cryptocurrencies was a broad sell-off in technology stocks, as risk appetite waned amid growing concerns over excessive spending on artificial intelligence.
Focus Shifts to Midterm Elections and Their Impact on Regulation
Cryptocurrency markets remained on edge ahead of the U.S. midterm elections, with in-person voting set to begin later on Tuesday.
The election results are expected to play a major role in shaping the regulatory agenda for the remainder of President Donald Trump’s term. The 46th U.S. President and the Republican Party are facing record-low approval ratings amid growing discontent over high energy prices, corruption, and a protracted war with Iran.
If the Democrats gain full control of Congress—where Republicans currently hold a majority in both chambers—it would effectively extinguish any prospects for passing new legislation in support of cryptocurrencies over the next two years.
Although Trump and the Republicans have sought to advance pro-crypto legislation over the past two years, a key bill—the "Clarity Act"—failed to pass Congress this year.
A Republican defeat in the midterm elections would limit the scope for further pro-crypto regulation, leaving it primarily in the hands of the executive branch—a policy area that can shift rapidly with a change in administration.
Against this backdrop, investors have been selling off cryptocurrencies en masse, and the market has failed to recover this week. For the second consecutive year, October—historically a strong month for cryptocurrencies—has fallen short of expectations.
Cryptocurrency prices today: Altcoins follow Bitcoin’s lead
The decline in Bitcoin has rippled across the broader cryptocurrency market, with most altcoins also posting significant losses over the past month.
Ether, the world’s second-largest cryptocurrency by market capitalization, fell 1.4% to $2,253, while XRP remained unchanged.
Solana dropped 2.7%, Cardano fell 1.5%, and BNB declined 1.7%.
Memecoins Dogecoin and $TRUMP lost 2% and 5.5%, respectively.