US Dollar Slides After Midterms as Gold Tops $4,000 and Debt Stands at $40.5T

• The US dollar hit a one-month low after the midterms, while gold price climbed back above $4,000
• US national debt stood at $40.5 trillion, roughly 75% above its level at the start of 2020
• A hypothetical $3,000 Bitcoin purchase at $75,739, sold at $78,358, would generate $103.74 in profit, a 3.46% gain before costs

The US dollar fell as the midterm results came in, while gold buyers pushed the metal’s price back above $4,000. Bitcoin (BTC) took a more erratic path, selling off early before recovering. The moves left traders weighing what Democratic control of Congress would mean for spending, growth, and interest rates.

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US Dollar Falls as Investors Reassess Washington

The Dollar Index was at 101.41 on November 4 after it reached a one-month low. The benchmark 10-year Treasury yield slipped nearly three basis points to 4.921%.

Democrats won majorities in both chambers of Congress. Investors were weighing potential scrutiny of AI investment and constraints on future spending. But President Donald Trump retains veto power.

Amidst this gold price climbed 2.9% to $4,045.36 an ounce earlier Wednesday. Lower yields reduced the appeal of interest-bearing alternatives, while a cheaper dollar helped overseas metal buyers.

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US National Debt Has Grown by $17.33 Trillion Since Early 2020

Treasury data put US national debt at $40.502 trillion, against $23.172 trillion on January 2, 2020. That is an increase of approximately $17.33 trillion, or 74.8%.

The total includes $32.72 trillion held by the public and $7.78 trillion in intragovernmental holdings. Those accumulated obligations remain another issue from Wednesday’s trading. The US midterm elections change the balance of power over future budgets. But existing debt remains outstanding.

Bitcoin Price Recovers After an Uneven Start

Bitcoin initially dropped below $76,000 before reversing, according to recent data. TDX Strategies founder Dick Lo attributed the recovery to a clearer election outcome. He added,

“Bitcoin dropped initially in response to the Democratic sweep of the midterm elections, but has since recovered as a clear outcome resolves political uncertainty.”

At press time, Bitcoin price was at $78,456.96, up 1.8%, alongside a rebound in US stock futures. Reports also revealed $215 million in net outflows from Bitcoin ETFs in October. The November rebound alone does not establish a fresh wave of institutional buying.

Investors could have pocketed dainty profits if they had bought the dip. Using MarketCapOf’s profit calculator, a hypothetical $3,000 purchase at $75,739 would buy approximately 0.03961 BTC. Selling at the November 4 comparison price of $78,358 would return $3,103.74, a $103.74 profit, or 3.46%.

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