Bitcoin Recovers After Elections, Despite Low Chances for CLARITY Act Passage and Short-Term Impact from Hacking Incident

Key summary

Ms. Gracie Chen, CEO of Bitget, stated that the results of the U.S. midterm elections, where the Democratic Party holds a majority, may reduce the chances of the CLARITY Act passing to 3%. However, President Donald Trump's directive to the SEC and CFTC to immediately issue regulations promoting cryptocurrencies has lessened market concerns. Although risky assets experienced a short-term sell-off after the elections, historical data shows that the S&P 500 has consistently generated positive returns after midterm elections. Bitcoin is expected to reach its average low point within one month. Although October may break this trend, the price of Bitcoin remains stable. The short-term support level is at $76,000, which is the 200-day average. If it remains above this level, the price has the potential to continue its recovery. In the third quarter, Bitget's trading volume reached 1.86 trillion. In October, it grew by 21.2% from February to September, including spot, derivatives, and CFDs, indicating investor activity. The hacking of a major platform has a short-term impact on the market. After Bitget allowed users to withdraw funds and compensate for losses, confidence began to return. Bitget uses a Circuit Breaker system, assessed by SlowMist, and has increased its security budget, maintaining a Proof of Reserves (PoR) above 110%. The Protection Fund has also been increased to over $300 million USD as of September 30, completing the process ahead of schedule, which demonstrates standard operating procedures and a strong financial position.