Federal Reserve's Role in Crypto Market Forecasted as US Midterm Election Looms

A recent analysis suggests that the US midterm election in 2026 may have significant implications for the crypto market. According to the study, the Federal Reserve's monetary policy decisions will play a crucial role in shaping market conditions.

The analyst predicts that a correction phase is likely to occur early in 2026, as political pressure mounts on the Fed to ease its stance and provide liquidity support. This, in turn, could lead to a boost in risk assets, including crypto.

As the mid-2026 timeframe approaches, the study suggests that the Fed will face increased pressure to soften its monetary policy, potentially leading to liquidity easing measures. The analyst notes that this shift in monetary conditions can have a significant impact on market sentiment and asset prices.

The analysis also highlights the potential for a broad market recovery in late 2026, driven by rising asset prices and improved voter sentiment. This, in turn, could lead to increased demand for crypto assets and a subsequent price rally.