It’s the election season in the US, and Bitcoin and the broad cryptocurrency trade have by no means been extra concerned within the political panorama. From the overtly pleasant stance of former President Donald Trump to the comparatively reserved place of Vice President Kamala Harris, there was fairly some drama within the interaction between the crypto market and United States politics.
There have been quite a few discussions regarding the consequence of the elections and its potential affect on the crypto panorama. QCP Capital, a distinguished buying and selling agency, is amongst the most recent to weigh in on the outcomes of the polls and the impact on crypto, particularly Bitcoin.
QCP Thinks Bitcoin Value Will Drop Following Election Outcome — Right here’s Why
In a November 2 report, QCP Capital revealed that it expects the US elections to be one other “sell-the-news” motion regardless of the end result. Just like the Nashville Bitcoin convention, the buying and selling agency expects many buyers to shut their BTC positions following the election on Tuesday, November 5.
In keeping with QCP, there was a sustained stage of short-term implied volatility above 72 vols for each Bitcoin and Ethereum within the upcoming elections. Because the title suggests, short-term implied volatility tracks the market’s expectations of value actions within the close to future.
With this metric as excessive as 72 vols in the mean time, there’s a sense that buyers are anticipating main value swings within the Bitcoin and Ethereum markets following the elections. Nevertheless, a rise in put skews that the majority merchants foresee downward value actions.
QCP highlighted that the rise in put skews means that merchants are taking “draw back safety,” with the expectation of a market correction. Finally, this aligns with the “sell-the-news” projection, mirroring the aftermath of the Nashville Bitcoin convention.
After nearly reaching its all-time excessive value within the earlier week, BTC has skilled a notable pullback under $70,000. As of this writing, the premier cryptocurrency stands at round $68,150, reflecting a 2.2% decline prior to now 24 hours.
Binance Merchants Go Lengthy On BTC Futures
In a current submit on X, Ali Martinez revealed Bitcoin futures merchants on Binance have begun to shut their quick place. In keeping with the on-chain analyst, 52.44% of the Binance futures merchants have now gone lengthy on the flagship cryptocurrency.
Supply: Ali_charts/X
A surge in lengthy positions means that extra buyers are backing the Bitcoin value to rise within the close to future. Therefore, this newest commentary alerts a major shift in sentiment, with the market seemingly leaning in direction of a extra bullish outlook just a few days earlier than the US elections.
It’s value mentioning that this alteration in Binance merchants’ positions could also be a response to the current dips in Bitcoin value. It’s doable that buyers are “shopping for the dip,” viewing the present value as the right entry level.
The value of BTC on the day by day timeframe | Supply: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
