The upcoming US midterm elections in Q4 2026 are being viewed as a potential catalyst for financial markets, including cryptocurrencies, due to anticipated changes in liquidity conditions. Market participant 'Egrag Crypto' suggests that early betting market signals indicate Republican weakness, which may lead to market-friendly economic policies. A three-phase timeline is proposed, starting with a market correction in early 2026, followed by pressure for a monetary policy shift mid-year, potentially easing liquidity. This could lead to a market recovery in the second half of 2026, coinciding with the election period. The thesis posits that rising asset prices can quickly boost public sentiment, aided by factors like dividend income and potential tax relief. It suggests that market structure and liquidity trends may influence political outcomes more than political events drive markets. Historical context is provided by the 2024 elections, where crypto markets rallied post-Trump's victory, but gains were later eroded by early 2026 due to macroeconomic pressures.