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🟢 The stock market cycle of the U.S. midterm elections is back!
Currently, the S&P 500 has retraced 9.05% from its January high of 7002. Many people are panicking, but history tells us:
In the past 100 years, during 25 midterm elections (the next one is on 2026/11/3),
✅ The average maximum drawdown in the 12 months before the election is 18.2% (range 7.4%–41.8%)
✅ The average gain in the 12 months after the election is 14.8% (the weakest being +12%)
Stock market perspective: Uncertainty before the election increases selling pressure, but after the election, clear policies turn into a "buying party." The current dip is only halfway, making it a classic profit-taking opportunity (Buy the Dip).
Crypto perspective: Bitcoin and Ethereum are inherently high Beta risk assets. Past rebounds in the stock market after midterm elections have often driven BTC to surge simultaneously (especially in a loose Fed environment).
Right now, the crypto market is highly correlated with stocks. Once the post-election uncertainty disappears, the crypto space is very likely to lead a breakout!
History won't repeat itself 100%, but the data is on our side.
Are you going to continue panicking, or start positioning?