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US Elections to Continue to Drive Crypto Volatility: Report
Analysts at QCP Capital said that US election news will continue to induce volatility in the cryptocurrency market, as the presidential outcome will define the future of digital assets in America and, perhaps, globally.
QCP Capital Monday relationship price movements following the failed assassination attempt on former US President Donald Trump as an example of the election’s impact on digital assets. As crypto.news previously noted, Bitcoin (BTC) and the broader virtual currency market has seen a slight increase of value after the Pennsylvania event on July 13.
Data shows the total cryptocurrency market has gained over 10% in the past week, with Bitcoin recently recovering $68,000. President Joe Biden News Exit The race also rattled markets. Bitcoin fell nearly $1,000 over the weekend before regaining strength and climbing back above $67,500.
According to QCP Capital, the Nashville Bitcoin conference could be the next event to trigger price swings. Trump is expected to speak at the meeting and there are rumors that he could promise a strategic national reserve of Bitcoin.
BTC Price Chart | Source: Trading View
Crypto Options Market
QCP analysts added that volatility has also gripped digital asset options markets due to uncertainties surrounding the outcome of the presidential election.
“Out-of-the-money option prices have risen significantly over the past 24 hours, indicating expectations for more extreme market moves,” analysts noted.
Volatility may be high in the market, but the firm has predicted that upward movements are likely. Expected Federal Reserve rate cuts and a pro-crypto election result in the United States have been suggested as reasons for the price gains.