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In recent years, US Elections have proved to be a turning point for Bitcoin, with BTC gaining an average of ~160% over the following year. While much of this can be attributed to market structure at the time, the pattern should not go unnoticed.
Markets react unfavorably to uncertainty, of which there are few things more uncertain than a looming election. Regardless of the outcome, elections being in the rearview are great for risk assets like Bitcoin.
The most sure-fire election outcome is that:
The US Debt Will Continue to Increase
USD Will Be Debased as a Result
Every White House Administration and Congress has chosen the same fiscal policy: debt expansion and currency debasement. These elections will not change that and inevitable outcome: scarce assets will continue to appreciate over the long-term; stocks, real estate, gold, and Bitcoin.
Bitcoin Mining allows you to arbitrage low-cost electricity to produce BTC at a discount to the market price; this arbitrage expands during BTC bull markets. With mining hardware at discounted prices due to the 2026 bear market, now is one of the best market entry-points in years.
Despite the drop in the price of BTC, the arbitrage remains wide. Antminer S21 XPs at $0.070/kWh are currently producing BTC for ~$53,000/coin; a ~30% discount to the market price.
The heatmap below shows how much of the mining hardware cost can be re-couped in the first 12 months across a variety of different Bitcoin price scenarios. For a miner HODL’ing all of their mining rewards, just a 50% increase in the price of Bitcoin (below average for post-election years) can result in ~80% of the capital being recouped in a single year.
Miners placed in service before 12/31 may qualify for a 100% deduction for the 2026 tax year. If you’ve been on the fence, now is the time to take action. Fill out the form on our website to learn how Blockware can help: https://blockwaresolutions.com/info
