According to Matrixport, the US presidential election year is usually favorable for stocks and Bitcoin. Last year, we showcased Bitcoin’s performance during the US elections in 2012, 2016, and 2020. By this July, Bitcoin has risen by 39% since the beginning of the year, and although the average annual return of 192% seems challenging to achieve, Bitcoin is following the election year pattern. Ethereum and Bitcoin have year-to-date returns of 49% and 43%, respectively, far exceeding the Nasdaq (22%) and S&P 500 (16%). Despite political and macroeconomic tailwinds, traders may opt for high-interest tokens and wait for better re-entry opportunities. The Federal Reserve may indicate an intention to start a rate-cutting cycle at its July 31 meeting.
