CoinShares Research Director: Bitcoin has basically digested the expectations of a Democratic victory, and there is room for a rebound

According to Bitcoin.com, CoinShares Research Director James Butterfill stated regarding the results of the U.S. midterm elections on November 3 that Bitcoin has largely priced in the expectations of a Democratic victory. With uncertainty removed, there is room for a rebound, and the expected results may not necessarily trigger another round of selling.

Butterfill warned that a greater concern is the slowdown in crypto reform. The Clarity Act faces a more difficult path, and investigations into Trump-related businesses may consume political capital and generate unsettling headlines in the industry. He believes that U.S. crypto stocks may be more sensitive than Bitcoin, especially exchanges, token issuers, and businesses reliant on new regulatory licenses.

Butterfill also mentioned that compliant operators could benefit from competitors facing stricter scrutiny. For Bitcoin, real yields, dollar liquidity, and ETP fund flows remain more important than the elections.