Democrats eye Trump's crypto ties after midterms as India warns of AI wallet-key theft and Trump Media moves 4,259 pledged BTC; today’s BTC nears $80.5K amid Neutral sentiment. The cryptocurrency market rebounded after sharp volatility in the previous trading session. Bitcoin (BTC) climbed back above $80K to approximately $80.5K, gaining around 5.49% over the past 24 hours. Ethereum (ETH) also recovered to nearly $2,424 with a 24-hour gain of approximately 8.06%. Both major crypto assets showed signs of a short-term price recovery. Market sentiment improved as today's Fear and Greed Index rose to 50, indicating Neutral sentiment compared with yesterday's reading of 34 in the Fear zone. Across the broader market, the DePIN sector gained 5.79% over the past 24 hours, while the RWA and Layer2 sectors advanced 5.47% and 5.28%, respectively. The gains reflected a broad recovery across major cryptocurrencies and several higher-volatility market sectors. In the derivatives market, CoinGlass data showed that total crypto liquidations reached USD 992 million over the past 24 hours. Long liquidations accounted for approximately USD 415 million, while short liquidations totaled around USD 577 million. The higher volume of short liquidations indicated that leveraged bearish positions faced significant pressure during the rapid market rebound. Bitcoin's market structure showed a shift in short-term trading activity after the price recovered from nearly $76K to above $80K. However, the price range established during the previous sell-off and subsequent recovery continues to carry substantial liquidation risk. According to CoinGlass liquidation estimates, a BTC decline below $76,461 could expose approximately USD 2.485 billion in cumulative long liquidation intensity across major centralized exchanges. Conversely, a move above $84,429 could trigger an estimated USD 1.18 billion in cumulative short liquidation intensity. These figures represent model-based estimates of potential liquidation exposure rather than actual liquidations. Meanwhile, Ethereum's total futures open interest increased 7.64% over the past 24 hours to approximately USD 29.992 billion. The increase indicated an expansion in outstanding derivatives positions alongside the price recovery, although rising open interest alone does not establish whether traders favor long or short positions. Institutional fund flows also showed changes in market participation. According to RootData, US spot Bitcoin ETFs recorded approximately USD 74.6 million in daily net inflows, with FBTC attracting USD 237 million. Spot Ethereum ETFs registered around USD 53 million in net inflows over the same period, including USD 32.8 million into ETHA. The figures highlighted differences in subscriptions and redemptions across individual funds. Overall, the recovery in BTC and ETH coincided with improving market sentiment, adjustments in leveraged positions, and changing ETF fund flows. Short-term market structure remains influenced by derivatives positioning and liquidity distribution.

Source: Alternative

Key News Highlights:

Democrats Secure Control of Congress and Plan Investigations Into Trump's Crypto Businesses and Big Tech

Following the Democratic Party's victory in both chambers of Congress in the US midterm elections, several Democratic lawmakers began outlining oversight and investigation plans for the next congressional term. The proposed investigations would examine US President Donald Trump's business activities and cryptocurrency ventures, along with major technology companies that maintain close ties to government policymakers. Democrats are expected to assume leadership of relevant congressional committees when the new Congress takes office in January 2027. These committees could conduct investigations through congressional hearings, document requests, and subpoenas. Senator Ed Markey warned that technology executives should prepare for a substantial number of congressional subpoenas as Democratic lawmakers increase their focus on oversight of the technology industry. Representative Robert Garcia, who is expected to chair the House Oversight Committee, also outlined plans to investigate the Trump family's business dealings, allegations of corporate corruption, and enforcement practices within certain federal agencies. In the technology sector, potential investigations could involve prominent executives such as Elon Musk, Meta CEO Mark Zuckerberg, and Nvidia CEO Jensen Huang. Congressional scrutiny may cover AI product safety, the energy demands of data centers, and business relationships between technology companies and the Trump administration. Reports also identified OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei as potential witnesses who could face questions about AI products and corporate governance. In the cryptocurrency industry, Democratic lawmakers have continued to examine digital asset ventures associated with the Trump family. Some lawmakers previously raised concerns about the president's cryptocurrency-related income, commercial interests, and potential conflicts of interest during his presidency. In 2025, Democrats on the House Judiciary Committee published an investigative report alleging connections between Trump's crypto businesses and government policy decisions. However, allegations raised through congressional oversight should be distinguished from legally established findings of wrongdoing. With control of Congress shifting to the Democratic Party, lawmakers have already begun recruiting legal counsel and investigative staff to support oversight activities during the next congressional term.

India Warns of Expanding AI-Assisted Cyberattacks on Crypto Exchanges Involving Stolen Wallet Keys and Fund Transfers

India's national cybersecurity agency, the Indian Computer Emergency Response Team (CERT-In), issued an updated security warning about an AI-assisted hacking campaign targeting cryptocurrency exchanges, fintech companies, and other financial institutions. The agency identified the threat actor as CRAFTY FALCON and warned that the group continues to conduct cyberattacks using artificial intelligence tools. CERT-In initially issued an advisory about the campaign in October and subsequently updated its findings to explicitly identify cryptocurrency exchanges among the affected businesses. According to the agency, the attackers use AI tools to rapidly gather information about target systems and identify application vulnerabilities. Automated scripts allow them to develop and execute attacks at greater speed. The attackers primarily exploit vulnerable applications, exposed testing environments, shared account credentials, and access tokens to gain entry into corporate systems. They then attempt to move into production environments where financial transactions and operational services are managed. Some attacks have also involved cloud infrastructure. Hackers deployed malicious files or analyzed application source code to identify weaknesses that could enable unauthorized transactions. CERT-In reported that attackers had exploited existing payment and disbursement APIs within victim organizations to initiate transaction requests. In certain cases, they first conducted small test transfers to confirm that unauthorized fund movements were possible before attempting larger transactions. The advisory also documented incidents involving stolen cryptocurrency wallet keys and funds transferred out of compromised wallets. These findings showed that the campaign had extended beyond unauthorized system access to the custody and movement of digital assets. Some attacks were deliberately carried out during weekends or public holidays when corporate security teams typically operate with reduced staffing. This approach allowed suspicious activity to remain undetected for longer periods. CERT-In further noted that attacks continued even against some financial institutions that had previously received security advisories and implemented remediation measures. The agency therefore urged affected businesses to strengthen around-the-clock security monitoring and improve their ability to identify unauthorized transactions. CERT-In has not disclosed the names of any affected cryptocurrency exchanges or provided an aggregate financial loss figure associated with the campaign.

Trump Media-Linked Wallets Transfer 4,259 BTC From Convertible Note Collateral Addresses

According to on-chain data tracked by blockchain analytics platform Arkham, Bitcoin wallets believed to be associated with Trump Media & Technology Group recently transferred approximately 4,259 BTC to an address linked to a major centralized exchange. The assets were valued at approximately USD 342 million based on Bitcoin prices cited in the report. The transfer was completed through two separate transactions involving approximately 2,140.03 BTC and 2,119.31 BTC. Both transactions were sent to the same wallet address identified as being associated with the exchange. Arkham's blockchain records showed that the transferred assets originated from wallets labeled "2028 Convertible Notes Collateral." These labels corresponded with previously disclosed debt collateral arrangements involving Trump Media. In its second-quarter financial filings, the company reported that approximately 4,260.73 BTC had been pledged as collateral for convertible notes as of June 30, 2026. Withdrawals and distributions involving these assets were subject to restrictions under the relevant debt agreements. A securities filing dated November 2 also disclosed that certain convertible noteholders would be entitled to request cash repurchases on November 30. If all eligible holders exercised their rights, the potential payment obligation could approach USD 1 billion. The company acknowledged in its filing that it might need to sell Bitcoin or other digital assets to meet these obligations if refinancing and other funding arrangements proved insufficient. Based on Trump Media's previously disclosed holdings of approximately 14,139 BTC as of July 31, the latest transfer represented roughly 30% of its reported Bitcoin holdings at that time. However, those figures were taken from an earlier disclosure and cannot establish whether the company's current Bitcoin holdings have declined. Trump Media conducted similar large Bitcoin transfers in May and August 2026. The company previously explained that those transactions were related to trading strategy or digital asset custody management rather than outright Bitcoin sales. The latest blockchain records confirm that BTC moved between the identified wallet addresses, but they do not establish that the transferred assets have been sold on the market. The actual purpose of the transactions and any subsequent asset movements remain subject to further disclosure from the company.

US Midterm Elections Reshape Crypto Regulation as Industry-Backed Candidates Lose Key Congressional Seats

The November 2026 US midterm elections resulted in Democratic control of both the House of Representatives and the Senate. Several Republican lawmakers who had long supported the cryptocurrency industry lost their seats, creating potential changes in the composition of congressional committees responsible for digital asset legislation and financial regulation. The cryptocurrency industry committed substantial political funding during the election cycle. According to pre-election figures, spending by industry-related political action committees and advocacy groups exceeded USD 170 million. Much of the funding was directed toward supporting candidates with favorable positions on cryptocurrency policy and opposing politicians who advocated tighter regulation. One closely watched contest took place in Ohio, where Democratic candidate Sherrod Brown defeated Republican Jon Husted in a Senate special election. Crypto-related political groups reportedly spent more than USD 60 million attempting to prevent Brown's return to the Senate, but the funding did not change the election outcome. Brown has long focused on banking oversight, consumer protection, and risks associated with digital assets. He previously chaired the Senate Banking Committee, and his return to Congress adds another prominent voice to future financial regulatory discussions. In the House of Representatives, Republican lawmakers Bryan Steil, Zach Nunn, and Ann Wagner were among the crypto-supportive candidates who failed to secure reelection. Their defeats reduced the number of established congressional allies supporting the industry's legislative priorities. With Democrats taking control of Congress, Senator Elizabeth Warren could assume leadership of the Senate Banking Committee, while Representative Maxine Waters could return as chair of the House Financial Services Committee. Both committees play important roles in legislation covering banking, financial markets, and digital asset regulation. However, the election did not result in the defeat of every crypto-supportive candidate. Republican Senator Pete Ricketts secured reelection, preserving some of the industry's existing support in Congress and maintaining a range of policy positions on digital assets. On the legislative front, the CLARITY Act was designed to establish a regulatory framework for US digital asset markets. The legislation now faces a changing congressional agenda, potential shifts in committee leadership, and new conditions for bipartisan negotiations. It remains uncertain whether the bill can advance in its existing form. Democratic lawmakers have also previously called for closer examination of business relationships between the Trump administration and the cryptocurrency industry. Their concerns extend to regulatory decisions made by agencies such as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). With the next Congress scheduled to take office in January 2027, the direction of US digital asset policy will depend on proposed legislation, congressional committee proceedings, and formal regulatory announcements.

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