Analyst: Democratic sweep of Congress already priced in by market, Bitcoin rebounds 1.6%

BlockBeats news, November 4 — Despite Democrats winning control of both the Senate and House in the U.S. midterm elections, Bitcoin rebounded about 1.6% after a brief dip to $78,458. Multiple analysts believe the outcome of a Democratic sweep of Congress had largely been priced in by the market in advance, and the election results did not constitute a new major bearish factor.

André Dragosch, Head of Research at Bitwise Europe, said the market had already fully priced in expectations of a Democratic victory, and combined with depressed market sentiment and gradually exhausted selling pressure, Bitcoin staged a V-shaped rebound. James Butterfill, Head of Research at CoinShares, also believes that as election uncertainty faded, the market saw a relief rally.

However, Democratic control of Congress could increase legislative uncertainty for the crypto industry. Analysts believe that advancing the CLARITY Act will become even more difficult, and related legislation may remain stalled until 2027; the Trump family's crypto business could also face more congressional investigations. But existing SEC and CFTC regulatory guidance and the GENIUS Act will not automatically become invalid as a result.

Analysts pointed out that compared with the election results, Federal Reserve policy, real interest rates, dollar liquidity, and crypto ETP fund flows remain the main factors influencing Bitcoin's price trajectory.