Bitcoin's post-midterm gains look strong, but the halving cycle may explain them
Bitcoin has historically risen sharply in the year after US midterm elections, averaging about 50%, while the S&P 500 has gained 15%. Some analysts note that bitcoin's pattern could also be explained by its four-year halving cycles, so traders may want to look at both factors.
Why it matters
- Bitcoin and the S&P 500 have both historically posted positive returns in the year after midterms.
- Bitcoin's historical average gain after midterms is far higher than the S&P 500's gain.
- The strong bitcoin pattern may come from the four-year halving cycle instead of the election timing.
What to watch next
Watch whether bitcoin's price action follows the four-year halving cycle or the midterm pattern in the coming year.
