Bitcoin rebounds above $80,000 as tech stocks split after Democrats win Congress
Bitcoin and tech stocks move in different directions after US vote
The Nasdaq-100 rose 1.14% to 28,500 on Wednesday after Democrats won control of both chambers of Congress in the US midterm elections. Bitcoin also rose back above $80,000.
The wider market recovered, but individual technology stocks moved in opposite directions. Some software stocks rose sharply, while Nvidia, Tesla and Intel fell.
Main market moves on Wednesday
- The Nasdaq-100 climbed 1.14% to 28,500, after index futures had briefly fallen more than 2% overnight.
- Microsoft rose 6.01% to $552.32.
- Alphabet, the parent company of Google, rose 4.63% to $292.99.
- Nvidia fell 2.19% to $202.17.
- Tesla fell 3.61% to $384.10.
- Intel fell 5.80% to $57.04.
- Bitcoin traded around $80,512, up 4.12% on the day, after an initial election-related selloff.
- Trump Media & Technology Group, the company behind Truth Social, fell 14.29% to $5.10.
What drove the split in AI and tech stocks
Investors weighed the prospect of tougher artificial intelligence regulation against expectations that a divided government could limit major policy changes, the source report said.
According to Reuters, cited in the report, investors are concerned about greater scrutiny of AI data centers. Data centers are the large facilities used to run AI systems. The report linked the concern to Democratic victories in states such as Texas and Georgia, where large infrastructure projects have become politically contentious.
The report also said the AI sector was already facing questions about large infrastructure spending and whether those investments would produce enough return.
The conflicting moves reflect uncertainty over what Democratic control of Congress will mean for technology companies that have benefited from the Donald Trump administration's approach to deregulation, the report said.
Trump Media decline started before the election
Trump Media was one of Wednesday's biggest losers. Its fall extended a decline that was already underway before Democrats secured control of Congress.
The stock had already lost about 55% of its value year-to-date before Tuesday's vote, according to the report.
The report said traders had been bearish on the stock for months. It has been in a pattern traders call a "death cross" since March 2025. A death cross means the average price over the last 200 days is higher than the average price over the last 50 days. The report said the company has also lost nearly 90% of its market cap since its 2024 cap.
What the wider market levels show
The Nasdaq-100 recovered on Wednesday, but the report said the index remains well below its October highs above 31,000.
The report described 28,000 as an immediate support zone. It said a move back above 29,000 would strengthen the short-term recovery. Support means a price level where buying interest has previously appeared, according to the report's technical description.
Bitcoin's recovery above $80,000 was presented in the report as another sign that risk appetite has not disappeared entirely.
Why the different moves matter
Wednesday's split between technology winners and losers suggests investors are becoming more selective about exposure to the AI boom and the political risks around it, the report said.
The report did not provide a confirmed outcome for AI regulation or other policy changes following the election.
Where this report comes from
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.