Key Points
- U.S. election news is predicted to continue influencing crypto market volatility, according to QCP Capital analysts.
- The analysts also noted that the options market for digital assets has experienced significant volatility due to election uncertainties.
According to analysts at QCP Capital, the ongoing U.S. election news is anticipated to keep causing fluctuations in the cryptocurrency market.
The analysts believe that the election results will have a significant impact on the future of digital assets, not only in America but potentially on a global scale.
Impact of Election News on Crypto Market
In a recent report by QCP Capital, it was noted that the failed assassination attempt on former U.S. President Donald Trump had a noticeable impact on digital assets.
For instance, Bitcoin (BTC) and the wider virtual currency market saw an increase in value following the incident in Pennsylvania on July 13.
Data indicates that the total cryptocurrency market experienced a growth of over 10% in the week following the event, with Bitcoin reclaiming the $68,000 mark.
Furthermore, the news of President Joe Biden’s withdrawal from the race also led to significant market movements, with Bitcoin dropping by nearly $1,000 over the weekend before recovering and rising above $67,500 again.
The analysts also suggested that the upcoming Nashville Bitcoin conference could be another trigger for price fluctuations, especially as rumors circulate that Trump might announce a strategic national Bitcoin reserve during his speech.
Volatility in the Crypto Options Market
The QCP Capital analysts also highlighted that the digital asset options market has been swept by volatility due to uncertainties surrounding the presidential election outcome.
They noted that prices for out-of-the-money options have seen a significant increase in the past 24 hours, indicating expectations for more extreme market movements.
Despite the thick volatility in the market, the firm predicts that upside movements are likely. They suggest that anticipated Federal Reserve rate cuts and a pro-crypto U.S. election result could be reasons for future price increments.
