Bitcoin $BTC$77,883.88 has erased its early losses and is steaming higher as U.S. midterm election uncertainty fades.
The largest cryptocurrency fell just below $76,000 early Wednesday as reports indicated Democrats were winning control of both chambers of Congress, a setback for pro-crypto President Donald Trump. It has since staged a V-shaped recovery, erasing its early losses. As of this writing, the cryptocurrency traded 0.5% higher on the day.
The sharp recovery reflects easing uncertainty, according to TDX Strategies founder Dick Lo.
“Bitcoin dropped initially in response to the Democratic sweep of the midterm elections, but has since recovered as a clear outcome resolves political uncertainty,” Lo told CoinDesk.
Lo explained that a Democratic-controlled Congress is generally viewed as less favourable for pro-crypto legislation, and divided government makes major, market-unfriendly policy shifts unlikely.
Still, President Trump can “govern through executive orders while leveraging his veto authority to counter Democratic bills, he added.
Nicolas Quatravaux, head of EMEA at Paradigm, the leading institutional liquidity network in crypto derivatives, made a similar point.
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