Bitcoin has risen by 4% from its local low point.

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As predicted by the market analysts, the Democratic Party swept the mid-term elections in the United States, triggering a wave of volatility in the crypto market. Despite the Democrats' traditionally opposing stance towards cryptocurrencies, the market reacted positively to the change in political power dynamics. Bitcoin, along with major cryptocurrencies such as SOL, ETH, and ZEC, rebounded strongly from their election-induced lows, adding $100 billion to the total market value of cryptocurrencies in just a few hours.

Although this brief respite came at a timely moment, analysts still stated that the Democratic Party's sweeping victory in the midterms will not have a substantial impact on the structure of the crypto market, and they believe that this outcome has created a sense of certainty that is conducive to a healthy market.

The Democratic Party's sweeping victory in the midterms triggers a market rally

The Democratic Party swept in the U.S. midterms, winning control of both the Senate and the House of Representatives, achieving a decisive victory. The core issues that concerned voters were affordability and the ongoing energy crisis, which were undoubtedly further exacerbated by the U.S.-Iranian war.

As the Democrats began to celebrate their victory, the S&P 500 index rose by 2.3%, regaining 7,650 dollars. Meanwhile, precious metals once again seemed to become valuable, with gold and silver adding a total of one trillion dollars to their market value.

Beyond traditional finance, optimism has also spread to the crypto market. BTC, SOL, and ETH rose by 3.9%, 4.7%, and 4.5% respectively, while ZEC, the leader in privacy coins, soared by 12.3%. Although this strong upward trend may be attributed to technical mean reversion following a continuous decline, history shows that the months following mid-term elections tend to be strong.

Since 1942, in every year following the U.S. mid-term elections, the S&P 500 index has recorded gains in the following June. Although this by no means guarantees that prices will rise in the coming months, traders still draw confidence from historical data.

Analysts believe that the impact of the mid-term elections has been exaggerated.

The mid-term elections in the United States are undoubtedly an important political event, but analysts and investors believe that their impact on market sentiment is greater than on the overall structure.

For example, although it may seem that the Democratic Party's regained control of both the House of Representatives and the Senate is favorable to less regulation of cryptocurrencies, this victory does not suddenly grant them full authority over SEC policies and frameworks.

Although the Republican Party suffered losses in the midterms, the regulatory actions and legislative projects that have already been initiated will continue to be pursued.

SEC and CFTC are still making every effort to lay a solid foundation for crypto companies in the United States, which is evident from the progress made in facilitating the entry of regulated 24/7 sustainable futures markets into the world's largest economy.

At the same time, the inner circle of the White House is now also under scrutiny. After sweeping the midterms, the Democratic Party has indicated its intention to investigate Trump's family's cryptocurrency business, starting with World Liberty Financial.

Predicting the truth of accurate market pricing once again

Kalshi and Polymarket once again proved their value in predicting the market, forecasting the final results long before voters stepped into the polling stations.

In addition to simple gambling platforms and trading venues, predicting market data is rapidly becoming an important part of the trading infrastructure. Predicting probabilistic outcomes can provide traders and investors with useful data to help them formulate other trading strategies.

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