US Midterm Elections and Crypto: Why Market Volatility Often Precedes a Bitcoin Rally
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Binance Research: US midterm years are linked to higher volatility; S&P 500 average peak-to-trough drawdown ≈16%. 7 of last 10 midterm cycles saw equity corrections >10%, making midterms the weakest in the four-year presidential cycle — political uncertainty can raise downside risk for crypto markets, DeFi, DEX/CEX trading, token launches, fundraising and adoption.
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US midterm election cycles have historically been associated with increased volatility across financial markets, with the S&P 500 experiencing average peak-to-trough drawdowns of about 16%, according to a new report published by Binance Research.
It stated that midterm years have typically produced the weakest performance within the four-year US presidential cycle, as political uncertainty surrounding elections weighs on investor sentiment. In seven of the past ten midterm cycles, equity markets recorded corrections of more than 10% as political risk continued to influence market behavior.
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