The crypto market is in a rush due to macroeconomic conditions. The Fed is making quantitative tightening to curb rising inflation. However, experts reveal why November and beyond after the US by-election may bring some relief to the BTC, SHIB, ETH market. Here are the details…
Analyst pointed to this development for ETH, SHIB, BTC
Analyst CanteringClark shared data on Twitter highlighting the stock market’s performance before and after the midterm elections. The US midterm elections will be held on November 8, 2022. According to the data, the stock market is performing poorly overall in the months leading up to the midterm elections. On the other hand, stocks almost always rise rapidly in the months following the election. Regardless of the outcome, the months after the election almost always outperform the months before.
Here is an interesting chart on stock market performance into and after mid-terms.
Take a look at the 70s, which are often referenced right now as loosely comparable to current conditions.
Most relevant is 1974, to which a year prior inflation hit 8.8% pic.twitter.com/mlLAWvJ9Ma
— Clark (@CanteringClark) September 18, 2022
According to Clark, this is especially true for the 1970s. Experts believe that the 70s had macroeconomic conditions somewhat similar to today. According to Clark, 1974 has important similarities with current macroeconomic conditions. Inflation level reached 8.8% in the same period. As a result, the stock market fell close to 32%. However, after the elections, the markets recorded a strong recovery of 20%.
November, December will be good for crypto
Clark states that the current market behavior in terms of total volume realized is on par with other years. Therefore, November and December will probably be good months for the market. The crypto market has been strongly correlated with the overall market since 2020, as we have reported at Kriptokoin.com. Crypto assets behave similarly to tech stocks and the tech-focused NASDAQ. Therefore, the months after the midterm elections may give bulls something to cheer for. A poll by Bloomberg reveals that economists believe the Fed will remain hawkish through 2023. Therefore, according to experts, the Fed’s quantitative tightening could ruin the historical trend this year.
In the current situation, the market is not showing very encouraging movements. Bitcoin, the largest cryptocurrency by market cap, is losing close to 7 percent and is below $19,000. Ethereum, on the other hand, dropped 11 percent. ETH’s value slipped to the $1,200 levels. SHIB, MATIC, AVAX saw losses of more than 18 percent. ADA, DOGE, SOL, on the other hand, experienced a decrease of around 15 percent. The decline is thought to have gained momentum with the expectation of an interest rate hike by the US Federal Reserve. As it is known, the latest decision of the FED to increase interest rates will be announced on Wednesday.
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