A number of cryptocurrencies posted gains on Wednesday, November 4, after Democrats won both houses in the midterm elections, but Trump’s cryptos became the top 100’s biggest losers.
The Official Trump (TRUMP) crypto is now down 7.13% on the daily chart, trading at $1.47 after having lost roughly $40.2 million in market cap, which went from $455 million to $414.77 million, per CoinMarketCap data.
At the same time, the World Liberty Financial (WLFI) token has dropped 4.89%, changing hands at $0.048 after a $120 million decline in market value from $1.65 billion to $1.53 billion.
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Crypto rebounds following midterm elections
For comparison, Bitcoin (BTC) is up 2% at press time, sitting at $78,450. Similarly, XRP has gained 2.7%, currently trading at $1.29.
Ethereum (ETH) also advanced, rising 2.5% to $2,320. Other major digital assets, including Solana (SOL), Dogecoin (DOGE), and Cardano (ADA), posted gains of between 1.5% and 2.5%
However, the broader market still remains under pressure. The Democratic Party secured majorities in both chambers of Congress, but the election outcome introduces considerable uncertainty.
Notably, Democrats have generally adopted a more cautious approach towards digital assets, while much of the crypto-friendly legislation advanced during the first two years of Trump’s presidency.
What do the midterms mean for Trump’s cryptos and digital asset efforts?
During his 2024 presidential campaign, Trump pledged to make the United States the “crypto capital of the world.” Since returning to office, he has indeed pursued a more supportive approach towards digital assets.
Now, an electoral shift could create additional legislative obstacles to a clearer regulatory framework, potentially affecting measures such as the proposed Clarity Act.
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The administration has also supported measures designed to improve cryptocurrency companies’ access to banking services – another effort a change in legislation could complicate.
However, the ongoing market rebound, however slight, suggests that some of the initial political concerns may already have been priced in. Nonetheless, the midterms result, and the reaction to them, do not guarantee anything in the long-term, so it remains to be seen how the market is going to move.
Featured image via Shutterstock
