Markets
US Elections Will Continue to Fuel Cryptocurrency Volatility, Report Says
Analysts at QCP Capital said that news related to the US election will continue to induce volatility in the cryptocurrency market as the presidential outcome will shape the future of digital assets in America and, perhaps, the world.
QCP Capital Monday report The price movements following the failed assassination attempt on former US President Donald Trump are an example of the impact of the election on digital assets. As crypto.news previously noted, Bitcoin (Bitcoin) and the broader virtual currency market has seen a rise in value after the event in Pennsylvania on July 13.
Data shows that the total cryptocurrency market gained more than 10% in the following week, with Bitcoin recently recovering to $68,000. News of President Joe Biden’s nomination exit The race results also shook markets. Bitcoin fell nearly $1,000 over the weekend before recovering and climbing back above $67,500.
According to QCP Capital, the Nashville Bitcoin conference could be the next event to trigger price swings. Trump is expected to speak at the meeting, and there are rumors that he could promise a strategic national reserve of Bitcoin.
BTC Price Chart | Source: TradingView
Crypto Options Market
QCP analysts added that volatility also swept through digital asset options markets due to uncertainties surrounding the outcome of the presidential election.
“Out-of-the-money options prices have increased significantly over the past 24 hours, indicating expectations of more extreme market moves,” the analysts noted.
Market volatility may be significant, but the firm predicts that upward moves are likely. Expected rate cuts from the Federal Reserve and a crypto-friendly US election outcome have been cited as reasons for the price surge.