According to ChainCatcher citing Bitcoin.com, CoinShares research head James Butterfill said Bitcoin has largely priced in expectations of a Democratic landslide in the U.S. midterm elections on November 3, leaving room for a rebound as uncertainty fades. He said the expected result would not necessarily trigger another sell-off.
Butterfill said a bigger concern is slower crypto reform. The Clarity Act faces a tougher path, while investigations into businesses linked to U.S. President Donald Trump could consume political capital and generate unsettling headlines for the industry. He said U.S. crypto stocks, particularly exchanges, token issuers and firms reliant on new regulatory approvals, may be more sensitive than Bitcoin.
Compliant operators could benefit if competitors face greater scrutiny, Butterfill added. For Bitcoin, real yields, dollar liquidity and ETP flows remain more important than the election.