NEW YORK, United States / CryptoWire.AI / – Bitcoin was heading for its fifth consecutive weekly loss on Friday after slipping to around $75,000, as markets weighed the outlook for crypto regulation under a Democratic Congress. The cryptocurrency was set to fall more than 2% for the week. It gave up gains made after the November 3 midterm elections, when Democrats won control of both chambers. Its intraday low was close to $75,100, according to market reports.
The decline came alongside a broader retreat from risky assets. A steep sell-off in U.S. technology and artificial intelligence stocks hurt sentiment across markets. More than $1.25 billion of crypto positions were liquidated over 24 hours, with bets on rising prices making up nearly 89% of the total. Losses spread from Bitcoin to most major altcoins during Friday trading. Selling intensified as the week drew to a close.
Democrats have generally taken a tougher line on crypto than Republicans. Senator Elizabeth Warren has led calls for a wider crackdown. Warren has long argued that crypto poses risks to consumers and the financial system. Democratic lawmakers have also sought stronger anti-money laundering and risk controls, which industry groups say could hold back innovation. Democratic opposition contributed to the Clarity Act stalling in the Senate in September. The bill aimed to set market structure rules for digital assets.
Riot sells most of its bitcoin reserves
Sentiment was also hit by Riot Platforms, one of the largest U.S. bitcoin miners. Riot said this week that it cut its bitcoin holdings by about 79% in the third quarter, to 2,418 BTC. It sold 10,599 BTC for roughly $751.5 million during the period. The miner is using the proceeds to fund new data centre capacity. It also repaid a $200 million credit facility from Coinbase.
Bitcoin’s track record under the last Democratic-controlled Congress is mixed at best. Between 2021 and 2022, the cryptocurrency fell about 43%, Investing.com said. That period, however, also brought rising interest rates and the collapse of major crypto firms, including Terra, FTX and Celsius. Those events played a large part in the downturn. The current environment differs in several ways, including clearer federal rules for stablecoins.
Ether and memecoins extend losses
Ether dropped 8.6% to $2,223 on Friday and was down 1.5% for the week, on track for a sixth straight weekly decline. XRP fell 8.9%, BNB lost 3.5%, and Solana and Cardano each slid about 7%. Dogecoin, the largest memecoin, declined 6.6%. The broad losses left most major tokens lower for the week as risk appetite faded. Ether’s losing streak is now one week longer than Bitcoin’s.
The $TRUMP memecoin linked to President Donald Trump slumped more than 22% this week after Republicans lost ground in the midterms. It hit a record low of $1.116, according to Investing.com, before a small recovery on Friday. The token reached $73.43 soon after its launch around Trump’s January 2025 inauguration. It has lost about 99% since, adding to concerns over Trump-themed tokens. Its slide this week was steeper than that of most major cryptocurrencies.