How will Bitcoin’s Q4 go? The U.S. midterm elections could prove significant.
Historically, in 17 of the 19 midterms since 1946, the stock market has performed better in the six months after an election than in the six months following it.That is primarily due to the market’s expectations of higher government spending from a new Congress,Liz Ann Sonders, Charles Schwab’s chief investment strategist, who further argues that 2022 could yield a different outcome.
“An additional infusion of funds seems unlikely this year, given the government’s historic levels of spending and stimulus in response to the pandemic," she explains, adding: “The combination of high inflation, the war in Ukraine, and a lingering pandemic has already made this cycle, unlike prior midterm years. With so many other forces at play in the market, I wouldn’t put much weight in historical midterm-year performance.”As a result, Bitcoin remains at risk of tailing U.S. stocks lower, with the $12,000–$14,000 price target in view.
“At some point, the market will be controlled by those in the community that is long-term believers in BTC and very unlikely to sell and the growing global community which uses BTC for commerce,” Stephane Ouellette, chief executive of FRNT Financial Inc.,