Bitcoin and ether fall to two-month lows as crypto market comes under pressure

Fresh uncertainty has gripped the cryptocurrency market amid the prospect that Democrats could gain control of the US Congress after the country's midterm elections. Investors fear that regulation of digital assets could become stricter, and late on Sunday night that worry drove a sharp fall in the prices of bitcoin and ether.

The world's two largest cryptocurrencies fell to their lowest levels in more than two months.

According to a report by the news agency Reuters, bitcoin — the world's largest and oldest cryptocurrency by market value — fell more than 2 percent to $73,708. That is its lowest price since August.

At the same time, ether, the second-largest cryptocurrency, fell nearly 5 percent. Each ether was worth $2,223, also its lowest since August.

Investors fear that if the Democrats' influence grows in the US midterm elections, regulation of the cryptocurrency sector could be tightened. That has created uncertainty over the future policy framework for digital assets.

In particular, the idea that new restrictions could come on cryptocurrency trading, investment and market operations has made investors more cautious.

Earlier, the theft of about $6 billion in assets from Binance, the world's largest cryptocurrency exchange, created volatility in the market. In recent times, that incident has put pressure on investor confidence.

The election of several politicians known as critics of cryptocurrency in the US midterm elections has also added to the market's concern.

Taken together, security risks, uncertainty over regulatory policy and fears of political change have increased selling pressure in the cryptocurrency market. That has affected the prices of leading digital assets, including bitcoin and ether.