Cryptocurrencies fall to two-month lows after US midterm election

A heavy sell-off has hit the cryptocurrency market after the Democratic Party gained control of Congress in the US midterm elections. In Sunday's late trading, Bitcoin fell more than two per cent to $73,708, its lowest level since August. Ether slid about five per cent to $2,223, also its lowest since August.

Analysts say investors are selling on fear that a Democrat-controlled US Congress will impose tougher regulations on this asset class. The pressure on the market has been compounded by the election last week of several outspoken critics of the crypto industry.

Bitcoin is the oldest and largest cryptocurrency by market value. The market was also shaken in recent days by a $6 billion theft on Binance, the world's largest exchange platform. With such security breaches and political changes combining, investors moving away from risky assets was clearly visible in recent trading sessions.

Market watchers say the coming weeks will show whether the new political landscape translates into concrete legislation, and whether investor confidence in digital assets can recover from the combined blow of political change and security failures.