Cryptocurrency markets faced significant selling pressure following the emergence of U.S. midterm election results. Bitcoin dipped below the $74,000 threshold during early Monday trading in Asia, hitting a low of $73,708 (approximately NT$2.4 million)—its weakest point in over two months and its lowest price since August. Ethereum experienced a more pronounced decline, sliding roughly 5% to $2,223 (approximately NT$73,000), which also represents its lowest level since August.
According to Reuters, the selloff initiated during Sunday evening trading, driven primarily by investor concerns that the Democratic Party might push for more rigorous cryptocurrency regulations after securing control of the U.S. Congress. Market participants observed that the post-election political shift has increased regulatory uncertainty, triggering a rapid exit from risk-on assets. Bitcoin retreated by more than 2%, while Ethereum, which typically exhibits higher volatility, saw a notably steeper drop.
The digital asset market had already been unsettled by a series of recent events. Binance, the world’s largest cryptocurrency last week’s midterms, reinforcing investor expectations that the future policy landscape will become increasingly restrictive.
Coin | Latest Quote | One-Day Decline | Price Significance
— | — | — | —
Bitcoin | $73,708 | More than 2% | Lowest since August
Ether | $2,223 | About 5% | Lowest since August
Note: Quotes reflect levels during Asian trading early Monday; USD/TWD conversion is for reference only.
Against this backdrop, the legislative stance of the U.S. Congress regarding crypto assets has emerged as a primary variable influencing coin prices in recent years. While the market had initially anticipated that the regulatory framework would gradually gain clarity, the election outcomes reversed that sentiment. Consequently, investors have begun to re-evaluate potential risks, including the prospect of higher compliance costs and new limitations on trading platform operations.
Regarding the potential impact, institutional investors suggest that short-term volatility in the cryptocurrency space may intensify, particularly for small- and mid-cap coins like Ethereum, which are expected to fluctuate more than Bitcoin. Should the new Congress move forward with a more stringent regulatory agenda, exchanges, stablecoin issuers, and providers of related financial products would likely face the initial brunt of the impact. However, some analysts contend that clearer regulation could prove beneficial in the long term by facilitating the entry of institutional capital; the ultimate outcome depends on the severity of the rules implemented. The market will closely monitor legislative developments once congressional appointments are finalized, as these will serve as a key indicator for whether coin prices can stabilize.
