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Midterm Elections BTC Performance Review: Market bottoms often occur around elections; following past elections, 1 annual gains were substantial
BlockBeats reports that November 2, the U.S. midterm elections will be held on November 3. Looking back at crypto market performance during past election periods, Bitcoin exhibited a pattern of relative weakness in election years and recovery in the year after 1 elections. According to HTX market data, 2014、2018、2022 within the three midterm elections in 12 months after the elections, Bitcoin rose by approximately 24.5%、44.9%and 92.3%.
Meanwhile, the midterm election years themselves were mostly bear markets, with Bitcoin declining by approximately 2014 for the full year 56%、2018 approximately 73%、2022 approximately 64%. The fourth quarter of those years also mostly generated negative returns, with 2014 Q4 approximately -16.7%、2018 approximately -42%、2022 approximately -14.8%. Short-term volatility was even more pronounced. For example, after the 2018 election, 1 months later, it had fallen sharply by approximately 45.5%, before gradually rebounding. Market bottoms often occurred around elections: in 2014, approximately 71 days after the midterm election; in 2018, approximately 38 days afterward; and in 2022, approximately 13 days afterward.
Notably, midterm elections overlap significantly with Bitcoin's traditional 4-year cycle. Compared with the midterms themselves, macro liquidity and cycle positioning have a greater impact. Historical samples are limited and should not be extrapolated linearly.
In this midterm election, U.S. voters will elect all 435 House seats, 35 Senate seats, and multiple governorships, directly determining who controls Congress during the remainder of Trump's 2-year term. Republicans currently control both chambers by narrow margins (approximately 218-214 in the House and 53-47 in the Senate), but Trump's approval rating has fallen to a historic low of around 32%. Factors including inflation, the Iran war, and tariff policies have triggered voter dissatisfaction. Polls generally show Democrats leading nationwide, and most forecasting models believe Democrats have a relatively high probability of winning the House, while the Senate remains closely contested. Republicans are making every effort to retain their majorities, but historical patterns show that the party in power often loses in midterm elections.
Original link https://m.theblockbeats.info/flash/374987