THE IS WHY THE US ELECTION KEEP ON IMPACTING THE CRYPTO MARKET
The US elections are here, and the markets are on high alert! Historically, elections bring uncertainty, leading to market volatility .
But don't worry, there are patterns to watch out for. Since 1980, US stock indices like the S&P 500 and Nasdaq 100 have posted annual gains during presidential election years, except during major market crises .
Election Year Market Trends:
Stock Market Rally: The S&P 500 tends to gain during election years, with an average return of 7.4% .
US Dollar Shifts: Research shows that Republican presidencies start with a strong dollar, which then depreciates, while Democratic presidencies begin with a weak dollar that appreciates .
Volatility: Elections can cause market fluctuations, creating opportunities for traders .
Key Factors to Watch:
Policy Expectations: Investors react to potential changes in governance, economic policies, and regulations .
Interest Rates: Changes in interest rates can impact market performance .
Geopolitical Events: Global events, like trade wars, can influence market trends .