Cryptocurrency volatility could surge if US election is ‘too close to decide’ —FalconX
While many cryptocurrency traders are trying to guess market direction based on the results of the upcoming US election, one analyst warns that a fierce showdown between presidential candidates could trigger unexpected volatility.
“However, if the results are too close and take too much time to reach them, we could see additional volatility,” David Lawant, head of research at FalconX, said in a Nov. 1 market report.
Market participants relieved by end to ‘non-directional trading’
Lawant noted that traders will be relieved as the US election clears the way for the market after the cryptocurrency market has been “directionless” since April.
“After six months of directionless trading, markets appear eager to move beyond election uncertainty and onto firmer ground,” he explained.
Since April, Bitcoin (BTC) has traded within a range of $53,991 to $73,149.
Lawant said investors were expecting a “positive outcome” from whichever party wins the US election on November 5, but some believe a Donald Trump victory could lead to “bigger gains” due to clearer industry-friendly promises. He emphasized that there is.
Likewise, Swyftx senior analyst Pav Hundal recently told Cointelegraph that “a Trump win will provide a dopamine hit.”
Meanwhile, options traders appear optimistic about Bitcoin hitting new all-time highs just weeks after the election, regardless of the outcome.
Bitcoin open interest (OI) for call contracts expiring at the end of November (the value or number of outstanding futures contracts that have not yet expired) is “concentrated around $80,000,” according to recent data from cryptocurrency exchange Deribit. It turns out that there is.
Lawant says Bitcoin and Solana stand out.
Lawant explained that along with Bitcoin, Solana (SOL) also stands out as a “potential outperformer in the conversation.”
“BTC, acting as a proxy for cryptocurrencies, could further benefit from ETF flows, which will be a major source of new capital in 2024. SOL’s strong narrative positions it as a potential destination for profit diversification.”
Meanwhile, Lawant claimed that Ether (ETH) is “conspicuously absent from most discussions.”
relevant: 5% of US voters identify as single-issue cryptocurrency voters — Paradigm poll
The comments come just weeks after 10T Holdings founder Dan Tapiero said the US election results would not change the bullish trajectory of cryptocurrencies like Bitcoin.
“I don’t think it really matters. Now everything is going up. The election will pass,” Tapiero said of Bitcoin during a panel discussion at the Permissionless conference in Salt Lake City, Utah.
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