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 the publicly friendly stance of former President Donald Trump to the relatively reserved stance of Vice President Kamala Harris, there has been some drama in the interaction between the cryptocurrency market and US politics.
There have been many discussions regarding the election results and their potential impact on the cryptocurrency scene. QCP Capital, a prominent trading firm, is among the latest to weigh in on poll results and their impact on cryptocurrencies, especially Bitcoin.
QCP believes that the price of Bitcoin will fall after the election result – and here is why
In a report dated November 2, QCP Capital open She expects the US election to be another act of “selling news” regardless of the outcome. Like the Nashville Bitcoin Conference, the trading firm expects many investors to close their positions in Bitcoin after the election on Tuesday, November 5.
According to QCP, there has been a sustained level of short-term implied volatility above 72 volumes for both Bitcoin and Ethereum in the upcoming elections. As the name suggests, short-term implied volatility tracks the market’s expectations of price movements in the near future.
With this metric rising to 72 volumes at the moment, there is a sense that investors are anticipating significant price fluctuations in the Bitcoin and Ethereum markets after the election. However, the increase in deviations most traders expect bearish price movements.
QCP highlighted that the rise in sell deviations indicates that traders are taking ‘downside protection’, anticipating a market correction. Ultimately, this is in line with the “sell news” forecast, reflecting the results of the Nashville Bitcoin Conference.
After reaching an almost all-time high price the previous week, Bitcoin saw a notable decline to below $70,000. As of this writing, the value of the flagship cryptocurrency is around $68,150, reflecting a 2.2% decline over the past 24 hours.
Binance traders are buying into BTC futures contracts
In a recent post on X, Ali Martinez open Bitcoin futures traders on Binance have begun closing their short positions. According to the on-chain analyst, 52.44% of Binance futures traders are now long on the flagship cryptocurrency.
Source: Ali_charts/X
The increase in long positions indicates that more investors are supporting a rise in the price of Bitcoin in the near future. Thus, this latest observation indicates a major shift in sentiment, as the market appears to be leaning towards a more bullish outlook just days before the US elections.
It is worth noting that this change in Binance traders’ positions may be a reaction to the recent declines in the price of Bitcoin. Investors may be “buying the dip,” considering the current price to be the ideal entry point.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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