LONDON/HONG KONG, Nov 4 : Cryptocurrencies recovered on Wednesday from overnight losses triggered by the Democrats winning control of both houses of the US Congress in the midterm elections, a potential blow to an industry that has sought faster deregulation for digital assets.

While Republican US President Donald Trump has been the most high-profile advocate of reduced regulation, some Democrats have also backed a light-touch approach. 

The crypto sector spent more than $300 million backing crypto-friendly Democrat and Republican politicians in roughly equal measure during the current and previous election cycles.

Bitcoin briefly touched a six-week low before recovering to trade up 0.7 per cent on the day by 0841 GMT at $78,354,…