Bitcoin (BTC) Set for Volatility as Election Day Begins
According to recent findings by QCP Capital, anxiety levels are rising across stock, bond, and cryptocurrency markets as the U.S. presidential election draws near.
Market participants are reacting to former President Donald Trump’s lead in prediction markets, which has prompted traders to adopt long positions in anticipation of rising values for the dollar, cryptocurrencies, and Treasury yields. However, should Vice President Kamala Harris secure a victory, these trends could rapidly reverse, resulting in sudden shifts across financial markets.
The crypto options market is forecasting a potential 3.5% price swing for Bitcoin on election night, but experts warn that investors might be underestimating the volatility that could follow. Current volatility premiums on contracts set to expire after November 8 suggest a general expectation of a quick outcome in the election.
Bitcoin’s status as a favored asset in the “Trump trade” aligns with the former president’s supportive views on cryptocurrencies. Following recent polling that indicates a slight edge for Harris, Bitcoin spot prices dipped, alongside noticeable outflows from spot ETFs.
READ MORE:
Mt. Gox Moves $2.2 Billion in Bitcoin, Sparking SpeculationThis situation mirrors the events of 2016, when Trump’s surprise victory initially led to declines in U.S. futures, only to see a subsequent rebound. QCP anticipates a flurry of Bitcoin trading activity as the election results start coming in, reminiscent of the spike in trading volumes observed just days after Joe Biden was declared the winner in 2020.
As voting outcomes begin to emerge, Bitcoin is likely to experience significant price fluctuations, signaling a period of instability and active trading ahead.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Magic Eden (ME): The Largest NFT Marketplace on Solana
What is Magic Eden (ME)? Magic Eden (ME) is a major player in the NFT space. It started as the largest NFT marketplace on the Solana blockchain, known for its fast transaction speeds and low fees. Over time, the platform expanded its reach, supporting NFTs on Ethereum, Polygon, and Bitcoin. Magic E
FTX plans to start reimbursing creditors by January 2025
1MCHEEMSUSDT now launched for futures trading and trading bots
Bitget has launched 1MCHEEMSUSDT for futures trading with a maximum leverage of 20, along with support for futures trading bots, on November 25, 2024 (UTC+8). Welcome to try futures trading via our official website (www.bitget.com) or Bitget APP. 1MCHEEMSUSDT-M perpetual futures: Parameters Details