Business: The U.S. is currently at the forefront of important factors that can impact financial markets. With the much-anticipated FOMC meeting in September and the upcoming November elections, attention is focused on the U.S. These events are important, affecting not only traditional markets but also crypto enthusiasts, who are hoping for legislation that could ease regulation in the cryptocurrency space.
This year has been significant for cryptocurrencies. Bitcoin has achieved new all-time highs, and the approval of spot bitcoin and ether exchange-traded funds (ETFs) in the U.S. represent major strides toward mainstream adoption. These achievements underscore the growing integration of digital currencies into the global economy, paving the way for greater political and regulatory scrutiny as elections approach. According to experts, the primary impact of crypto ETFs is their increased legitimacy in the sector. However, some users believe their main impact is on the flows that flow into the market. Still, the upcoming U.S. presidential election will impact both outlooks. If pro-crypto candidates win, they could act as a significant market driver, as presidential choices shape overall market sentiment.
“Historical evidence going back to 1927 suggests that when elections are held in a recession year, the incumbent party loses 70% of the time. Furthermore, when the economy goes into recession in the 12 months following the election, the incumbent party typically loses, too. What is different about this election is that the hot-button topic is not economic growth, which has been strong in recent quarters, but prices and inflation, which have been difficult to control and have impacted affordability and disposable income,” said Subho Maulik, founder and CEO of Appreciate.
