From CryptoPotato · By Dimitar Dzhondzhorov
The November 2024 election, which saw Donald Trump become America’s 47th president, triggered a major cryptocurrency rally. After all, the Republican presented himself as a strong supporter of the industry throughout his campaign, promising to make the USA a global crypto hub, promote innovation, establish a strategic Bitcoin reserve, ban the creation of a CBDC, and implement a more favorable regulatory framework for digital assets.
During his nearly two years in office, he fulfilled several promises, but other decisions have increased geopolitical tensions and negatively affected financial and crypto markets. With that in mind, we asked three of the most widely used AI-powered chatbots to assess how Bitcoin might react if the Republicans lose the midterms next month. Here’s what they had to say.
Pullback on the Way?
According to ChatGPT, if Republicans lose control of Congress (especially both chambers), BTC could face short-term selling pressure. Specifically, OpenAI’s platform expects a 5-10% drop immediately after the potential news, while a 15% fall was described as “a stress scenario.”
At the same time, ChatGPT said this would not mark the start of a new bear market and would likely be followed by a substantial rebound. It also claimed that if the result is already priced in, BTC might barely move south.
The latest polls suggest Democrats have the upper hand ahead of the November 3 midterm elections. Prediction market Kalshi, for instance, currently assigns Republicans less than a 30% chance of winning Congress despite Trump’s promises for a $5,000 payment if they maintain control.
Perplexity shared a similar view, expecting that a possible loss for Trump’s party could lead to a short-term correction in Bitcoin and not automatically trigger a crypto crash.
Meanwhile, the chatbot warned that a collapse is not completely out of the question and may occur only if election results align with falling ETF inflows, higher interest rates from the Federal Reserve, or a major deleveraging event.
Google’s Gemini agreed with the thesis, estimating that a short-term correction after a Democratic midterm victory is a realistic possibility.
“However, unless accompanied by a major macroeconomic shock (like hawkish Federal Reserve pivots or liquidity contractions), such a pullback would represent a temporary price adjustment rather than a fundamental trend reversal,” it added.
The Historical Data
Not long ago, popular analyst Ali Martinez noted that the US midterm elections have historically preceded a major drop in Bitcoin’s price. He reminded that after the 2010, 2014, 2018, and 2022 elections, the cryptocurrency fell 72%, 65%, 52%, and 27%, respectively.
At the same time, Martinez doesn’t think this could stop BTC’s overall bullish move, viewing a potential drop after the elections as a perfect buying opportunity.