US elections to keep driving crypto volatility: report

Analysts at QCP Capital said that US election news will continue to cause volatility in the cryptocurrency market as the presidential results will shape the future of digital assets in America and perhaps globally.

QCP Capital’s Monday report cited price action following the failed assassination attempt on former US President Donald Trump as an example of the election impact on digital assets. As Crypto.news previously noted, Bitcoin (BTC) and the broader virtual currency market saw a surge in value following the July 13 incident in Pennsylvania.

Data shows the total crypto market cap has gained more than 10% in the week since, with Bitcoin recently reclaiming $68,000. News of President Joe Biden’s withdrawal from the race also rattled markets. Bitcoin fell by about $1,000 over the weekend before regaining strength and rising above $67,500.

According to QCP Capital, the Nashville Bitcoin conference could be the next event to trigger price volatility. Trump is expected to speak at the meeting and there are rumors that he could promise a strategic national Bitcoin reserve.

BTC price chart | Source: TradingView Crypto options market

QCP analysts added that digital asset options markets are also experiencing volatility due to uncertainties regarding the outcome of the presidential election.

“Prices of out-of-the-money options have increased significantly over the past 24 hours, indicating an expectation of more extreme market moves,” analysts said.

Market volatility could be intense, but the firm predicted that upward movements were likely. Expected Federal Reserve rate cuts and a pro-crypto US election result were suggested as reasons for the price increases.