Here's how $6.34 billion Binance hack exploited internal AI agents (4:12)

Bitcoin climbed back above $80,400 on Wednesday after Democrats won control of both the House and the Senate, shrugging off fears that a blue sweep in the midterm election would hurt the crypto industry.

The cryptocurrency recovered from an overnight low of $75,618, its weakest level in seven weeks. XRP rose 2.3% to about $1.31, at the time of writing.

BTC/USD. Source: Decibel

Hack hurt more than the vote

For bitcoin, the midterm sell-off was milder than the hit from Binance’s record hack a week ago. On Oct. 29, hackers drained about $6.34 billion from Binance in roughly 20 minutes. Bitcoin fell more than 4% to $77,994 the next day.

Crypto stocks took a bigger beating. Coinbase sank 10.6%, Circle 9.3% and Strategy 7.8% that session, and bitcoin then struggled to reclaim $80,000.

The midterm reaction was a quick dip and rebound. While a blue wave was expected, the Binance hack came as a shock. 

Related: Binance founder issues chilling warning after record crypto heist

Crypto’s costly losses

Crypto PACs spent about $170 million on the midterms, but lost several of their biggest bets:

  • Ohio: Fairshake and its affiliates poured tens of millions into opposing Brown, who chaired Senate Banking and stalled a crypto market-structure bill in 2024.

  • Illinois: Fairshake spent over $10 million opposing Juliana Stratton in the primary. She won her Senate race on Tuesday.

  • Texas: The industry backed Paxton, who lost.

Cynthia Lummis, crypto’s most vocal Senate backer, is retiring, and Democrats could investigate the Trump family’s crypto dealings.

More on TheStreet Roundtable

  • Jack Dorsey-led Block’s DOJ settlement overshadows Q3 profit

  • Strategy CEO puts his Bitcoin firm alongside SpaceX, Alphabet

  • Circle crushes Q3 estimates as staff shrinks 5%

Crypto stocks climb, miners slump

Strategy jumped 5.4% to $142.96 and Coinbase rose 2.7% to $149.40, while Robinhood added 0.7% to $86.25.

Circle slipped about 1% to $74.50. Its third-quarter revenue of $865 million beat estimates, but it disclosed a 5% workforce cut.

But Bitcoin miners and AI-hosting stocks such as Hut 8 and IREN fell 20% and 8% respectively.

What’s next

Democrats will now run the House Agriculture and Financial Services committees, the two panels that handled the CLARITY Act.

The industry’s market-structure bill expires Jan. 3 if lawmakers don’t act.

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Related: Gold moves up 24 places on Roundtable 100 despite analyst warning

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