Binance: U.S. Midterms Historically Followed by Strong Bitcoin Gains

New research from Binance indicates that U.S. midterm election cycles have historically set the stage for significant recoveries in risk assets like Bitcoin and the S&P 500, despite current pressures from geopolitical tensions and rising energy prices. The S&P 500 has averaged a 19% return in the 12 months post-midterms, while Bitcoin, in the three recorded post-midterm years, has gained an average of 54%. This pattern is attributed to the resolution of political uncertainty once election outcomes clarify fiscal policy and regulatory agendas. However, the period leading up to the midterms is often volatile; the S&P 500 averages a 16% drawdown during midterm years, and Bitcoin has experienced sharp declines (e.g., 73% in 2018). Despite these pre-election drawdowns, the historical record suggests that the months following the elections offer a strong window for risk assets, potentially initiating a new rally once political ambiguity fades.

(Source：Bitcoin Magazine)