Bitcoin has not priced in potential Democratic midterm victory, Hilbert CIO warns

Hilbert Group maintains limited risk exposure ahead of the US midterms as Bitcoin faces technical weakness and growing demand for downside protection. Bitcoin has not fully priced in the possibility of a significant Democratic victory in Tuesday’s US midterm elections, according to Russell Thompson, chief investment officer at Hilbert Group, who warned that political uncertainty could add pressure to an already weakened market. “I do not think that a significant Democrat win is priced into the price of Bitcoin personally,” Thompson said in the firm’s Monday market update. Thompson cited prediction markets assigning a 94% probability to Democrats taking control of the House, with seat projections showing 235 Democrats against 186 Republicans. Such an outcome could complicate President Donald Trump’s legislative agenda over the next two years, Thompson said, although he cautioned that midterm polling has historically been unreliable. Hilbert said its “desk is running relatively light on risk” as it monitors three major uncertainties involving the elections, the aftermath of the Binance hack and a US military buildup in the Middle East. Thompson also warned that tensions in the Middle...