TL;DR
- Bitcoin could experience high volatility ahead of the U.S. elections, with a potential rally on the horizon, according to QCP Capital.
- Recent statements by Trump and Biden’s decision to endorse Harris have increased crypto market volatility.
- Interest in $100,000 call options for December remains strong, with rising volatility and expectations for a potential year-end rally.
Bitcoin (BTC) could be on the verge of experiencing a significant level of volatility as the U.S. presidential elections approach, according to a recent analysis by QCP Capital. The analysis indicates that market volatility, driven by political uncertainty, might be setting the stage for a possible rally in Bitcoin’s value.
QCP Capital’s analysis suggests that recent crypto market behavior has been influenced by political statements and decisions. Donald Trump’s comments, suggesting Taiwan should pay the U.S. for its protection, triggered instability in the semiconductor stocks sector, which in turn increased market volatility.
Additionally, Joe Biden’s decision to endorse Kamala Harris as his successor has introduced new variables, causing erratic movements in the crypto market. Following this decision, Bitcoin experienced a slight correction, with its current value at $66,996, showing a 0.5% change in the last 24 hours.
Bitcoin Appears to Have Overcome the Mt. Gox Crisis
Despite fluctuations, Bitcoin has shown notable resilience, fluctuating between $61,000 and $67,000 over the past week, even amid the uncertainty caused by Mt. Gox repayments. QCP Capital observes that the market seems to have largely absorbed and overcome these concerns. The perpetual funding rate has returned to a neutral position, indicating a balance in sentiment among traders.
Institutional interest in $100,000 call options for December remains strong, reflecting clear confidence in a potential year-end rally. This trend aligns with increased odds of a Donald Trump victory in the elections, given his recent support for the crypto market.
Furthermore, the options market has seen a rise in volatility, with out-of-the-money option prices significantly increasing in the past 24 hours. QCP Capital continues to recommend trades with upside potential, offering a “BTC ETF Win-Range” trade that could provide 5x returns if Bitcoin settles between $90,000 and $110,000 by the end of December.
