It’s the election season in the United States, and Bitcoin and the broad cryptocurrency business have by no means been extra concerned within the political panorama. From the brazenly 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 in regards to the final result of the elections and its potential influence on the crypto panorama. QCP Capital, a outstanding 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 Worth Will Drop Following Election End result — 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 result. Just like the Nashville Bitcoin convention, the buying and selling agency expects many traders 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 identify suggests, short-term implied volatility tracks the market’s expectations of worth actions within the close to future.
With this metric as excessive as 72 vols in the intervening time, there’s a sense that traders are anticipating main worth swings within the Bitcoin and Ethereum markets following the elections. Nevertheless, a rise in put skews that almost all merchants foresee downward worth 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 conference.
After virtually reaching its all-time excessive worth within the earlier week, BTC has skilled a notable pullback beneath $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 latest publish 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 traders are backing the Bitcoin worth to rise within the close to future. Therefore, this newest statement indicators a major shift in sentiment, with the market seemingly leaning in direction of a extra bullish outlook a couple of days earlier than the US elections.
It’s price mentioning that this modification in Binance merchants’ positions could also be a response to the latest dips in Bitcoin worth. It’s attainable that traders are “buying the dip,” viewing the present worth as the right entry level.
The value of BTC on the each day timeframe | Supply: BTCUSDT chart on TradingView
Featured picture from iStock, chart from TradingView