The common perception that the halving is the primary driver of price increases is rooted in the history of previous halvings, where the reduced supply of new cryptocurrencies led to price increases. However, it is crucial not to underestimate the impact of macroeconomic events, such as the U.S. elections, on the cryptocurrency market.
The U.S. elections significantly influence financial markets due to the uncertainties and expectations related to potential changes in economic policy and regulation. A period of heightened anticipation and uncertainty can often lead to increased volatility in the markets, including the cryptocurrency market. Investors may perceive cryptocurrencies as a hedge against political and economic uncertainty, which can explain the price increases observed during election periods.
In conclusion, while the halving remains an important event, it is essential for investors to also consider the impact of major political and economic events. A holistic approach that takes into account multiple factors, including the U.S. elections, can provide a more nuanced and potentially more accurate perspective on cryptocurrency market dynamics.
