Bitcoin's Election Day Panic: Crypto Traders Fear a Democratic Midterm Sweep

Crypto traders turned sharply bearish as Americans voted in Tuesday’s midterm elections, with prediction market Polymarket giving Democrats a 74% chance of winning both the House and the Senate. Bitcoin holders and crypto stock investors are exposed because the next Congress decides whether stalled crypto rules pass. Analytics firm Santiment said its count of bearish election posts reached a one-month high. The stalled CLARITY Act would divide crypto oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission; the Senate blocked it 49-50 on September 15, 11 votes short of the 60 needed.