Democrats taking control of Congress could push more mainstream money into Bitcoin, despite widespread fears the result is a blow to crypto, warns the CEO of deVere Group, one of the world’s largest independent financial advisory organisations.
The comments from Nigel Green come as Bitcoin recovered from an overnight slide to trade back above $81,000 on Thursday, after Democrats won both the House and the Senate.
He says: “The common view is that a Democratic Congress is bad news for crypto.
“I think it’s likely to work out the other way for Bitcoin, because gridlock weakens the dollar and tougher rules give big institutions the confidence to invest.
“With Democrats running Congress and President Trump in the White House, I think we’re looking at two years where very little gets through Washington.
“Markets worked that out quickly. Bond yields have come down, the dollar has weakened and Bitcoin has rallied, which tells you how investors are reading it.
“Bitcoin’s supply is fixed and no government controls it, so when the political picture in the US gets this uncertain, it tends to appeal to a much wider group of investors, including plenty who’ve never paid much attention to crypto before.”
The result is also likely to stall the CLARITY Act, the bill designed to set out how crypto markets are policed in the US.
It passed the House last year but was blocked in the Senate by a single vote in September, and Democrats want stronger investor protections written in before anything passes.
Nigel Green says: “CLARITY is very likely dead in its current form, and some in the industry will be disappointed. I’m not.
“A lot of big institutional money has stayed out because the rules weren’t clear or protective enough. If Democrats write tougher safeguards into the next version, I think it is likely to bring more of those investors in.”
For now, the regulators appointed by President Trump stay in place and trading carries on as normal.
“Nobody holding Bitcoin will notice any difference tomorrow,” says the deVere CEO.
“The regulators are the same people they were last week, and the President can still veto anything he doesn’t like. Investors usually welcome that kind of stability.”
Bitcoin has had a tough year. It’s still around 27% lower than 12 months ago, and the AI boom has drawn much of the retail interest elsewhere.
Nigel Green says: “It’s been a difficult year, and I’d never pretend Bitcoin isn’t volatile. But a lot of people expected this result to knock the price, and it went up instead. I read that as a sign much of the bad news was already priced in.”
He concludes: “If borrowing costs keep falling and the dollar stays soft, I’d expect Bitcoin to keep benefiting, as it has in similar conditions before. We remain very positive on Bitcoin, and nothing in this week’s result changes that view.”
