Grayscale’s head of research, Zach Pandl, believes the cryptocurrency industry will continue to expand regardless of the outcome of the upcoming U.S. midterm elections, according to a report published on 28 October.
Republicans currently hold majorities in both chambers of Congress, but prediction markets suggest Democrats could take control after the elections. Pandl argued that even if Democrats gain control of both the House of Representatives and the Senate, the broader outlook for digital assets is unlikely to change significantly.
Three factors supporting the long-term view
Pandl said cryptocurrency is no longer associated with a single political party. He cited research from Pew Research and The Harris Poll indicating that similar proportions of Republicans and Democrats own or use digital assets.
He also pointed to legislation such as the GENIUS Act receiving bipartisan support in Congress, which he said demonstrates that lawmakers from both parties recognize the importance of regulating and developing the sector.
Separately, Pandl highlighted the growing U.S. national debt as a long-term driver of cryptocurrency adoption. He believes this could encourage investors to explore alternative stores of value, including Bitcoin and other digital assets, as part of broader investment strategies.
U.S. accounts for a minority of global activity
Pandl also argued that the cryptocurrency industry does not depend exclusively on the United States. According to Grayscale’s estimates, only 15-20% of global crypto activity takes place in the U.S., while the remaining 80-85% happens internationally.
“Regardless of the outcome of the US midterms, users around the world will continue to seek out alternatives to fiat currencies as well as more effective payment systems, and foreign regulators will continue to put in place rules to support digital assets innovation in their jurisdictions,” Pandl said.
Market signals remain mixed
The global cryptocurrency market capitalization stood at $2.71 trillion at press time, a 1.6% increase over the previous 24 hours. Bitcoin’s market dominance was 60.30%, while 24-hour trading volume reached $162.455 billion, up 120.9%.
Market sentiment remained cautious, however. The Crypto Fear & Greed Index dropped to 30, indicating “fear,” compared with 51, or neutral, a day earlier; 50 last week; and 71, or greed, last month.
AMBCrypto also reported that Bitcoin’s anticipated “Uptober” rally had disappointed investors, with BTC declining 4.2% month-to-date as of 25 October, against its historical average October return of 18.1%.
The mixed signals suggest the market remains uncertain, with no clear signs of what comes next.
