Bitcoin advanced on Thursday, extending gains from the previous session as a Democratic sweep in the U.S. midterm elections triggered a broader rally across risk-sensitive assets.
The world’s largest cryptocurrency rose 1.75 percent to $79,574 by 12:59 GMT, recovering from lows of around $75,000 earlier this week.
However, it remained well below recent peaks as investors assessed the potential implications of a Democrat-controlled Congress for the cryptocurrency industry.
Weaker U.S. dollar and Treasury yields support digital assets
A weaker U.S. dollar, softer Treasury yields and a sharp decline in oil prices supported digital assets. Oil prices fell amid growing expectations that Congress could increase pressure on the White House to bring an end to the war with Iran.
Markets broadly welcomed the Democrats securing majorities in both chambers of Congress, removing a key source of political uncertainty. Investor sentiment also received support after U.S. President Donald Trump said he would accept the election results and work with Democrats.
Future of cryptocurrency regulation in focus
However, the election outcome raised questions about the future of cryptocurrency regulation in the U.S. A Democrat-led Congress has historically subjected the industry to greater regulatory scrutiny, with Democratic lawmakers instrumental in blocking the Clarity Act earlier this year.
Although not all Democrats oppose the cryptocurrency industry, many have expressed concerns about its risks and called for tougher anti-money laundering and risk-management requirements. The election results have therefore cast uncertainty over the prospects for future crypto legislation, much of which has received backing from Republicans.
These concerns limited Bitcoin’s recovery despite the broader improvement in market sentiment.
Riot Platforms sells 10,599 Bitcoin
Adding to sector concerns, major cryptocurrency miner Riot Platforms disclosed on Wednesday that it sold 10,599 Bitcoin during the September quarter, reducing its holdings to 2,418 coins.
The company said the sales were primarily intended to finance its ongoing expansion into artificial intelligence. However, the move raised questions about the profitability of Bitcoin mining and the outlook for the broader mining sector.
Riot’s sales took place during a strong third-quarter rally in Bitcoin, which climbed approximately 43 percent, largely supported by bargain buying following sustained losses earlier in the year.
Ether and major altcoins advance
Other major cryptocurrencies also advanced on Thursday, tracking Bitcoin’s recovery following a difficult October.
Ether, the world’s second-largest cryptocurrency, gained 3 percent to $2,388.86, while XRP rose 2.01 percent.
Solana and Cardano added more than 3 percent each, while BNB advanced 1.43 percent. Dogecoin also climbed 1.45 percent.
