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Crypto Market Continues to Face Selling Pressure Despite Democrats Winning US Senate

UTC by Bhushan Akolkar · 3 min read
Crypto Market Continues to Face Selling Pressure Despite Democrats Winning US Senate
Photo: Unsplash

The outcome of the US mid-term elections seems to have little impact on the crypto space which is still suffering the jolt of FTX collapse. Bitcoin makes a fresh 2022-low.

Following all the drama surrounding the mid-term elections, Democrats continued to retain control of the US Senate. Five days after the elections, the results came on Sunday, November 13.

However, the election officials are still counting the votes for some members of the House of Representatives. Thus, it remains unclear as to which party will control the lower house of Congress.

The crypto industry has been closely watching the election outcome to understand in which direction the crypto legislative actions can move. However, there have already been a number of pro-crypto candidates from both sides.

The crypto industry has been at the center of discussions at Capitol Hill this year. Also, a number of crypto proponents from both parties have won in their respective races.

Last week has been totally wild for the crypto space as we witnessed the collapse of one of the largest crypto exchanges FTX. The company’s $32 billion valuation went into ashes in less than a week times leading to major liquidations across the crypto sector.

The FTX contagion has spread to the broader cryptocurrency market which lost nearly 20% or $200 billion market cap. Other crypto lending firms like BlockFi with strong exposure to FTX have suspended withdrawals on the platform.

Crypto lender BlockFi has been at the receiving end of the crypto crisis this year. The firm has $80 million worth of bad debt with crypto hedge fund Three Arrows Capital. In a Twitter message last week, BlockFi said that it has limited platform activity and suspended withdrawals. It also asked clients to refrain from depositing to BlockFi wallets and interest accounts.

Crypto Market Continues to See Seeling Pressure

Despite the senate news, the crypto market continues to be in the shadow of FTX collapse. Earlier today, the Bitcoin (BTC) price by more than 6% hitting its new 2022-low under $16,000. However, in the last hour, Bitcoin has recovered by more than 5% currently trading above $16,700.

The altcoin space is also facing severe selling pressure. Ethereum (ETH) slipped under $1,200 dropping over 8% while Dogecoin (DOGE) and Polygon (MATIC) corrected 12% each.

Solana has been the most impacted digital assets by the FTX collapse. The SOL price tanked by a staggering 60% over the last week. Serum, a liquidity infrastructure hub built by FTX and used by market makers and lending protocols on Solana, has come under major distress. A Solana spokesperson said:

“Developers attached to Serum split off the project’s code in a so-called fork amid concern that an upgrade key controlling the program could be compromised.”

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