Cryptocurrencies keep falling in wake of blue wave

Cryptocurrencies tumble in risk-off rout

The volatility in tech stocks has captured most of the attention, but it has been a rough time for cryptocurrencies too. Worries about Iran and the bursting of the AI bubble don’t help, but it is the Democrat ‘blue wave’ in the mid-terms that has done the most damage. The Republicans positioned themselves squarely behind cryptocurrencies, but now the reckoning is due. The new Democrat-controlled congress is poised to investigate the Trump administration from top to bottom, and cryptocurrencies will not be immune.

Chill wind blows through cryptocurrency regulation

The prospect of the Democrats investigating a swathe of Republican activities means that cryptocurrencies are unlikely to escape unscathed. Already some voices in the ascendant party have expressed concerns about the administration’s links with cryptocurrencies, and with veteran Democrat Elizabeth Warren likely to lead the banking committee in the senate, it is a fairly safe bet that cryptocurrencies are facing a much less benign environment.

What we’re watching – Neoclouds, tech selloff and crypto outflows

After last week’s tech drubbing, the worry is that we are likely to see further derisking across tech stocks as investors look to cut exposure. The Jensen Huang news comes at a difficult time as it hits the biggest name in the world, but there will be a lot riding on the neoucloud earnings this week from Coreweave and Nebius. Meanwhile, cryptocurrency outflows have spiked of late, and are likely to go further as bitcoin continues to eat into the August gains.