Bitcoin price defends $76K lows as analysts see stocks pricing in ‘political gridlock’
Bitcoin made modest gains at the start of Wall Street trading on Tuesday as markets awaited cues from the US midterm elections.
On Tuesday, Bitcoin (BTC) experienced slight gains in early Wall Street trading as investors awaited signals from the US midterm elections. BTC/USD hovered around the $77,000 mark, maintaining local lows close to $76,300 observed on Friday. One-hour chart data from TradingView illustrated this trend.
In parallel, US stocks faced a mixed start to the trading day, as Apple shares attempted to recover from a 4% premarket decline. The tech giant reported a drop in gross margins to 45% to 46% for the December quarter, down from 47.9% in the prior quarter. This decline was attributed to rising memory-chip costs. Analysts were also weighing the potential effects of the US midterm elections on the balance of power within Congress.
While polls indicated significant Democratic gains, some experts, like Tobin Marcus from Wolfe Research, expressed skepticism, suggesting that the results might not be as favorable to Democrats as the polls suggested.
The S&P 500 and tech-heavy Nasdaq Composite Index both ended Monday in negative territory, with declines of 0.5% and 1.1%, respectively. Analysts at The Kobeissi Letter attributed the market weakness primarily to political uncertainty rather than concerns over AI spending. They argued that a divided Congress could result in frequent legislative deadlocks, making policy decisions less predictable. According to the analysis, the market was pricing in two years of political gridlock.
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