The cryptocurrency industry is becoming an increasingly powerful force in American politics.
New figures show crypto companies, executives and political action committees have already spent more than $500 million on the 2026 U.S. midterm elections, with the majority of funding flowing toward Republican candidates and pro-crypto campaigns.
Bitcoin drops below $73,000 as Iran tensions and ETF outflows shake crypto markets
Bitcoin fell below the $73,000 level on Thursday as rising geopolitical tensions involving Iran triggered a broader selloff across financial markets. The world’s largest cryptocurrency dropped roughly 3.6% over a 24-hour period, briefly trading around $72,800, while Ethereum fell below $2,000 and other major cryptocurrencies also moved sharply lower.
Analysts pointed to growing uncertainty after renewed strikes involving the United States and Iran added pressure to already fragile market sentiment. Investors increasingly shifted into a defensive “risk-off” position, pulling money from volatile assets such as cryptocurrencies and technology stocks. Asian stock markets also opened lower following the headlines, with Japan’s Nikkei and Hong Kong’s Hang Seng Index both declining.
The decline was amplified by heavy outflows from U.S. spot Bitcoin ETFs. On Wednesday alone, spot bitcoin ETFs recorded more than $733 million in net outflows, marking the largest daily withdrawal since late January. BlackRock’s IBIT fund accounted for the majority of the selling pressure, posting its second-largest daily outflow on record at more than $527 million.
Market analysts said institutional investors appear to be reducing exposure to crypto amid macroeconomic uncertainty, rising Treasury yields and increasing geopolitical risks tied to the Iran situation. Some traders also warned that large derivatives liquidations accelerated the downturn once key price levels for Bitcoin and Ethereum were broken.
Despite the sharp decline, traders are now closely watching whether Bitcoin can hold support around the $70,000 level. Analysts noted that continued ETF outflows and further escalation between Iran and the United States could create additional downside pressure across both crypto and traditional financial markets in the coming days.
Samsung Buys $408 Million Stake in South Korea’s Largest Crypto Exchange
Samsung is expanding its presence in the cryptocurrency sector with a major investment in Dunamu, the company behind South Korea’s largest crypto exchange, Upbit. Three Samsung affiliates will collectively acquire a 4% stake in the company for approximately 612.8 billion won, or about $408 million.
Samsung Securities is expected to take the largest share with a 2% stake, while Samsung Card and Samsung SDS will each acquire 1%. The shares are being purchased from technology giant Kakao, which has been rapidly reducing its exposure to the crypto market. In less than a month, Kakao has reportedly sold around $1.5 billion worth of Dunamu equity.
The move highlights how major South Korean corporations still view crypto infrastructure as strategically important, despite ongoing volatility in digital asset markets. Samsung has been involved in crypto-related technologies for years and introduced its own digital asset wallet for smartphones back in 2019. Since then, the company has continued exploring blockchain and Web3 services.
At the same time, many technology firms are increasingly shifting their attention toward artificial intelligence. Kakao has recently focused heavily on AI development through its Kanana AI models and partnerships with companies such as OpenAI. Analysts believe this strategic pivot toward AI is likely one of the reasons behind Kakao’s decision to scale back its crypto holdings.
The transaction is expected to close on June 19. Investors reacted cautiously to the news, with shares of Samsung Securities and Samsung SDS falling slightly, while Samsung Card posted a modest gain. Kakao shares also declined following the announcement.
Crypto industry pours hundreds of millions into Republican campaigns ahead of 2026 elections
The cryptocurrency industry is spending unprecedented amounts of money on the 2026 U.S. midterm elections, with the majority of funding flowing toward Republican candidates and political groups. According to data cited by Cointelegraph, crypto-related political action committees, executives and companies have already contributed more than $500 million aimed at influencing congressional races across the United States.
The political divide in crypto spending has become increasingly clear during the current election cycle. Crypto-linked Super PACs reportedly spent more than $23 million supporting Republican candidates, compared to roughly $11 million directed toward Democrats. Donations from crypto companies and executives show an even larger imbalance, with Republican candidates receiving more than eleven times the funding provided to Democratic rivals.
Much of the industry’s support appears tied to Republican positions on financial regulation and oversight. Many crypto firms see Republican lawmakers as more favorable toward deregulation and digital asset innovation, while Democrats are often viewed as more cautious toward the industry. At the same time, crypto PACs have also actively funded campaigns opposing Democratic candidates, spending nearly $2 million more attacking Democrats than supporting them.
The influence of crypto money has become especially visible in primary elections, where outside funding can heavily shape campaigns before the general election even begins. Several Republican candidates backed by pro-crypto groups — including candidates in Florida, Georgia and Alabama — received millions in outside support. However, the results have been mixed. In some races, Democratic candidates successfully used large crypto donations as a political attack point against opponents tied to the industry.
Despite the enormous spending, analysts note that cryptocurrency itself still does not appear to be a major voter issue for most Americans. Many candidates supported by crypto money barely mention digital assets in campaign advertisements or policy platforms. Instead, broader themes such as the economy, immigration, inflation and geopolitical tensions (including the ongoing conflict involving Iran) continue to dominate voter concerns ahead of the 2026 midterm elections