It’s election season in the United States, and Bitcoin and the broader cryptocurrency industry have never been more involved in the political landscape. From former President Donald Trump’s openly affable attitude to Vice President Kamala Harris’ relatively reserved attitude, there has been quite a bit of drama in the cryptocurrency market’s interconnection with US politics.
There has been a lot of discussion about the election result and its potential impact on the cryptocurrency landscape. QCP Capital, a leading trading firm, is one of the latest to evaluate the survey results and impact on cryptocurrencies, especially Bitcoin.
QCP believes that the price of Bitcoin will fall after the election result – here’s why
In a November 2 report from QCP Capital revealed that he expects the US election to be another “news selling” exercise, regardless of the outcome. Similar to the Bitcoin conference in Nashville, the trading firm expects many investors to close out their BTC positions after the election on Tuesday, November 5.
According to QCP, near-term implied volatility levels have remained above 72 volts for both Bitcoin and Ethereum in the upcoming elections. As the name suggests, short-term implied volatility tracks the market’s expectations for price movements in the near future.
With the current rate at 72 volumes, it appears that investors are expecting gigantic price swings in the Bitcoin and Ethereum markets after the election. However, an boost in the value of put options causes most traders to anticipate price declines.
QCP stressed that the boost in put option deviations suggests that investors are using “downside protection” while waiting for a market correction. Ultimately, this aligns with the “sell news” projection, reflecting the aftermath of the Nashville Bitcoin conference.
After nearly reaching an all-time high price the previous week, BTC saw a significant drop below $70,000. At the time of writing, the main cryptocurrency is trading at around $68,150, reflecting a decline of 2.2% in the last 24 hours.
Binance traders go long on BTC futures
In a recent post on X, Ali Martinez revealed Bitcoin futures traders on Binance have started to exit their brief positions. According to an on-chain analyst, 52.44% of futures traders on Binance have taken a long position on the flagship cryptocurrency.
Source: Ali_charts/X
The surge in long positions suggests that more and more investors support Bitcoin’s price rising in the near future. Therefore, this latest observation signals a significant shift in sentiment, with the market seemingly turning towards a more bullish sentiment in the days before the US elections.
It is worth mentioning that this change in the position of Binance traders may be a reaction to the recent declines in the price of Bitcoin. It’s possible that investors are “buying the dip,” viewing the current price as an ideal entry point.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
