US Midterms 8 Days Away as Crypto Market Watches Expected Democratic Edge

With eight days left until the U.S. midterm elections, attention is turning to how the result could affect digital-asset markets.

BeInCrypto reported on Oct. 26 that Polymarket bettors see a 93% chance Democrats will win control of the House and a 65% chance they will secure a Senate majority.

If Democrats take both chambers as forecast, that could weigh on Bitcoin (BTC), according to the report.

One factor is the dollar's strength. Glassnode, a digital-asset analytics firm, said Bitcoin's inverse correlation with the greenback has recently reached its strongest level on record. If Democrats rein in the Trump administration's large-scale fiscal spending plans and ease concerns over the budget deficit, the dollar could strengthen. That would put downward pressure on Bitcoin.

Uncertainty over digital-asset regulation is another major variable. Much of U.S. crypto regulation currently depends on policy decisions by the Securities and Exchange Commission and the Commodity Futures Trading Commission. BeInCrypto said that if Democrats control Congress and slow the Trump administration's legislative agenda, policymaking could shift further toward executive orders and regulator-led action. In that case, existing rules could later be revised if the administration changes.

At the same time, the outlet said Democratic control of Congress could support Bitcoin if it helps ease geopolitical tensions in the Middle East. If Democrats limit funding for military operations involving Iran, global oil prices could fall and inflation pressures could ease. That could reduce pressure for U.S. rate hikes, weaken the dollar and lift Bitcoin.