HTX Research Warns Election-Friendly Outcome May Not Lift Crypto After $1.36B ETF Outflows

HTX Research Warns Election-Friendly Outcome May Not Lift Crypto After $1.36B ETF Outflows

A US midterm result that favors the crypto industry could still leave prices lower if inflation and dollar funding conditions keep deteriorating, an outlook published by HTX Research on October 23 argues. The report, which examines the digital asset market before and after the November 3 elections, highlights the complex interplay between political outcomes and macroeconomic factors.

HTX Research says a favorable US midterm outcome may not lift crypto without fresh ETF inflows, after $1.36 billion left spot funds through October 14. This significant outflow underscores the sensitivity of digital asset prices to capital flows, suggesting that political tailwinds alone may be insufficient to drive market recovery if institutional investment continues to retreat.

The analysis points to the broader economic environment as a critical determinant of crypto performance in the post-election period. Even with regulatory clarity or industry-friendly policies emerging from the midterms, persistent inflationary pressures and tightening dollar funding conditions could suppress asset valuations. Investors are advised to monitor both political developments and macroeconomic indicators closely as the November 3 elections approach.

This content was first published on COINOTAG: https://en.coinotag.com/htx-research-midterm-outlook-etf-outflows