Bitcoin gains ahead of midterms at the start of Wall Street trading on Tuesday. Specifically, BTC circled $77,600, holding local lows near $76,300 from Friday.
Why Bitcoin gains ahead of midterms matter
Bitcoin headed higher as tech stocks rebounded. However, uncertainty surrounding the US midterm elections remains. Data from TradingView confirms the price action.
Stocks faced conflicting forces at the US open. For example, Apple shares tried to pare losses after falling 4% premarket. The company forecast gross margins of 45% to 46% for the December quarter. That is down from 47.9% previously, due to rising memory-chip costs.
Markets also weighed the midterms’ impact on Congress. Polls suggested significant Democratic gains. Nevertheless, some analysts cautioned that results could be less decisive.
Tobin Marcus is head of US policy at Wolfe Research. He spoke to CNBC. “Investors seem to have significant skepticism,” Marcus said. He added that polls were “likely overstating Democratic strength.”
The S&P 500 finished Monday down 0.5%. The Nasdaq Composite fell 1.1%. Analysts at The Kobeissi Letter argued that political uncertainty was driving weakness.
“The market is pricing-in a major shift in the political landscape,” it wrote on X. The analysis suggested a divided Congress could cause legislative impasses. Consequently, policy decisions would become less predictable.
“A change in the political landscape always comes with uncertainty,” it continued. “Objectively, the market is pricing-in two years of political gridlock.”
Oil digests latest Iran strike after 7% drop
Oil prices brushed off a US attack on Iran’s Qeshm Island. That outpost controls the Strait of Hormuz oil route.
The move came days after Secretary of State Marco Rubio said Trump was open to resolving the war diplomatically. Those comments triggered a 7% drop in WTI crude on Monday.
WTI initially jumped to $98.80 per barrel. Then it dipped below $95 on Tuesday. That was its lowest level since October 15.
Key takeaway
Bitcoin gains ahead of midterms with modest upside. Tech stocks rebounded, but political uncertainty persists. Oil prices remain volatile. Therefore, traders should watch election results and energy markets closely.
