The crypto market is rising today, with Bitcoin climbing to $78,000 and other major altcoins, including Ethereum, XRP, and BNB, gaining more than 2%. Among the top performers were Zcash, Pump, LayerZero, Venice Token, SPX6900, and Ethena. In total, the market capitalization of all tokens rose by 1.50% over the last 24 hours.
Crypto market is rallying after Democratic sweep
In theory, the crypto market should be falling after the Democratic sweep, in which the party won both the House of Representatives and the Senate. Trump has made crypto a major part of his presidency and pushed for several legislative priorities, including the GENIUS Act and the CLARITY Act. With Democrats now controlling Congress, the CLARITY Act is unlikely to pass.
However, the opposite is happening, with Bitcoin and other altcoins are doing well. These coins have continued to rise, with the valuation of all tokens rising to $2.61 trillion.
There are a few reasons why the crypto market is holding steady after the midterm elections. The first is that the outcome was largely priced in: analysts, polls, and prediction markets had all pointed to a Democratic win.
READ MORE: Trump to be impeached before his term ends – Polymarket
Another reason is that some analysts believe that Trump has not been a good president for the crypto industry. He launched the Trump meme coin, while Melania Trump launched the Melania token. While these tokens surged initially, they then crashed, with most of their holders losing billions of dollars.
Trump also launched World Liberty Financial, whose token is WLFI. The platform’s main product is the USD1 stablecoin, which the United Arab Emirates (UAE) used to fund its Binance investment.
Most notably, the Securities and Exchange Commission (SEC) under Trump has changed its stance on the industry, dropping most of the lawsuits it brought against companies like Coinbase, Uniswap, Tron, and Ripple Labs. On the surface, ending these cases looked like a clear win for crypto. In practice, however, the retreat may have made the industry less safe for investors.
Therefore, with Democrats controlling the Senate and the House of Representatives, there is a likelihood that they will put the brakes on Trump’s actions, and possibly make the crypto industry safer.
What next for Bitcoin and altcoins
Bitcoin and most altcoins have been in a downward spiral in the past few months as investors waited for the midterm elections. Most polls already expected the Democrats to win because of the US-Iran war and its impact on gasoline prices. Many voters were also concerned about Trump’s corruption.
BTC price chart | Source: TradingView
Therefore, with the elections done, there is a likelihood that investors will start rotating to assets that dropped ahead of the midterms. Indeed, Bitcoin is already flashing some bullish signals. It has formed a morning star candle at the 38.2% Fibonacci Retracement level and the 200-day Exponential Moving Average level. Therefore, there is a likelihood that the coin will bounce back, and possibly push other tokens higher.
READ MORE: Dow Jones, Nasdaq 100, S&P 500 futures tumble after Democratic sweep: what next?
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