Cryptocurrencies such as Bitcoin (BTC) are rising alongside stocks on Nov. 4 following
a decisive victory by the Democratic Party in the U.S. midterm congressional elections.
Bitcoin was up about 1% in early trading on Nov. 4 and changing hands at $78,300 U.S. Ethereum (ETH), the second biggest crypto, was up 1.36% at $2,320 U.S. per token.
Digital assets are getting a lift following news that the Democratic Party has taken control of both the U.S. House of Representatives and Senate after the midterm elections.
Crypto is rallying alongside stocks, with the blue-chip Dow Jones Industrial Average up nearly 1,000 points in premarket trading a day after Americans went to the polls.
The left-leaning Democrats now hold 54 seats in the U.S. Senate versus 44 seats for the conservative Republican Party.
In the House of Representatives, the Democrats won 228 seats compared to 139 for Republican lawmakers.
Markets are rallying on a decisive and uncontested victory for the Democrats, who will now be able to put a check on the policies of U.S. President Donald Trump.
Trump has said that he accepts the results of the midterm elections and that he will work with Democrats in Congress, assuring a peaceful transfer of power in Washington, D.C.
The post-election rally comes after weeks of volatility for both technology stocks and cryptocurrencies such as Bitcoin.
Markets have been rattled by poor financial results from companies such as Alphabet (GOOGL) and Amazon (AMZN), raising questions about the artificial intelligence (A.I.) trade.
At the same time, Bitcoin’s price fell below $80,000 U.S. after a hack at Binance on Oct. 29 resulted in $6.3 billion U.S. being stolen from the cryptocurrency exchange.
The hack and theft at Binance have shaken investor confidence in crypto security and raised concerns about threats posed by A.I. and quantum computers.
In the days since the hack, investors have pulled nearly $11 billion U.S. in cryptocurrencies and cash from the Binance trading platform.
