Crypto Enthusiasts are Paying Close Attention to the Midterm Elections in the United States.

The price of FTT, FTX’s native token, has dropped, and there appears to be a spreading market contagion of unknown severity. Bitcoin dropped to new lows for the year today, briefly dropping below $17,560. The price of Ethereum has dropped by 14%, to $1,329 per day.

In the United States, a midterm election is taking place today. Therefore, it seems unlikely that something will happen in the next day and a half to miraculously turn the market around. Although this is true, it does not change the fact that the upcoming Congress will play a critical role in shaping the industry’s long-term future, which could take several very different forms.

There are a large number of state and local offices, as well as all or part of the House of Representatives and one-third of the Senate, up for election today. The findings are anticipated to have far-reaching implications for the future of crypto regulation and countless other decisions that could affect crypto markets.

It is expected that the 2022 midterm elections will have a more significant impact on the political scene in the United States than previous midterms. There is intense competition for key levers of power at all levels of government amid rising inflation, persistent fears of recession, worries about electoral integrity, and profound disagreements over identity politics and fundamental social issues.

Despite the fact that crypto enthusiasts in the United States tend to avoid traditional party affiliations, there is a consensus that a Republican Congress would be more bullish for the industry than continued Democratic control of the House (the Senate is effectively in a stalemate until one party breaks the 60-seat threshold required to overcome the filibuster threat).

Democrats are known to be the most vocal in their opposition to cryptocurrencies and other forms of digital currency. Democratic presidential candidate and Senator from Massachusetts Elizabeth Warren (D) has been a vocal critic of cryptocurrencies since at least 2021 ,and in Congress, Representative Brad Sherman might be the only Democrat who despises cryptocurrency even more than Senator Elizabeth Warren does. Sherman had previously called for a total ban on cryptocurrencies before finally admitting that the boat had already sailed this past fall.

Nonetheless, there are some Democrats who favor promoting a favorable crypto policy and who have taken steps to engage with Republican crypto proponents, who are typically more numerous than Democratic advocates. Senate Democrats Cynthia Lummis and Kirsten Gillibrand have introduced the most significant of these bills but we won’t if they will still be in office until tomorrow

The indices markets tend to improve after the midterms. In election years, the S&P 500 has risen by an average of 6% between September and December since 1931, according to data compiled by Capital Group, RIMES, and Standard & Poor’s.

This year, however, might be different. Markets tend to dislike confusion and deception, which can be expected to increase on social media as voting ends. And there’s a record number of election-results-refusers running for office, with some saying they won’t accept the outcome if they lose.

As a result, it wouldn’t be out of the ordinary to see uncertainty and unrest over the next few days as people try to figure out who will dominate the next Congress.

Many people believe that a Republican win would be better for the cryptocurrency market in the short term. Several prominent Republicans, including Pat Toomey and Thom Lummis, have shown a strong interest in backing Bitcoin. While some Democrats are also on board with cryptocurrency, the GOP has been the more crypto-friendly party in recent years.

Under President Joe Biden , the White House published its initial crypto regulatory framework study back in September and the SEC became more inclined to designate tokens as securities, all of which are examples of harsh regulatory action taken against a previously unregulated business.

Additionally, inflation has skyrocketed during Biden’s presidency as the Federal Reserve fights to counteract the worst consequences of quantitative easing in the midst of the COVID-19 pandemic. There is consensus that the Federal Reserve’s decision to aggressively raise interest rates this year is a direct result of the massive influx of cash into the economy as a result of emergency spending.

However, this has presented its own difficulties as a result of the subsequent contractions in the market. Many investors are counting on a change in administration to boost the market despite the gloomy macroeconomic outlook and impending recession.

There could be some additional cryptohistorical significance associated with November 10 , 2022 , as this day, the Inflation data will be out , The total market for stocks and Crypto may bring on some tsunami “ Win” or : Crash” subjective ,which Political party gain most seats . On Twitter , everybody can notice the Viral Hashtag : #RedTsunami2022 or #BlueTsunami2022 . .but i am only aiming for #highCryptoTsunami

There should be no official results until late tonight, and some vote counts may take several days to certify. Due to the prevalence of fake news on social media, it is essential for readers to double-check the accuracy of any information they come across by consulting multiple credible sources.

In the past midterm elections , Bitcoin did drop by about half before the bear market ends. This has happened twice before, both times after the midterm elections .Once in 2018 ,however, a bull market started up after the market bottomed out and we saw an increase that kicked off the bull market and eventually pushed Bitcoin’s price above $60,000 in 2018.

There is a bear market pattern forming right now, and given that the midterm elections start tomorrow (November 8), I expect a drop of at least 50% within a month or two. We do hope for a Brief Relief rally after the midterms results are out ,as we expect the Wall street will celebrate no matters which every parties win

To put it another way, if this happens, the Bitcoin price forecast of $15,000 by the start of the first quarter of 2023 will come true. Again, high prices relative to strong money flows characterize trend exhaustion; in fact, these levels are the highest they have ever been for midterm elections.

Now that the results are shown in red on the map, the market may recover as the stock exchange reacts positively to the new win-win results, unless typically blue, but this short relief rally recovery will be short-term unless the Federal Reserve releases its inflation schedule on November 10 along with a 50 basis point reduction in interest rates…..So it all depends on Powell again

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