Bitcoin Faces High Volatility as US Elections Approach, Says QCP Capital
In Brief
QCP Capital has pointed out that the upcoming US elections serve as a crucial influence on Bitcoin, with lingering uncertainty surrounding its path after the voting.
A cryptocurrency trading company based in Singapore QCP Capital has shared its recent market report, indicating that Bitcoin saw a rise of 2.20% last night due to strong demand in the spot market. The cryptocurrency momentarily broke back above the $68,000 threshold before settling around $67,000.
During the hours of US trading, there was notable activity in long-term futures for March 28th, with around 600 contracts carrying a strike price of $120,000. This behavior indicates that optimistic long-term investors are reentering the market amid the current recovery.
Moreover, Bitcoin exchange-traded funds (ETFs) witnessed an injection of $456 million yesterday, marking a continuation of four consecutive days of net inflows. Such capital movement could suggest that Bitcoin is poised to once again challenge its all-time high of $73,790.
However, QCP Capital has alerted investors that the upcoming US elections represent a significant catalyst for Bitcoin and the wider cryptocurrency market. There remains doubt still uncertainty about how Bitcoin will behave following the elections. Options expiring around the election time are currently trading at a 10% premium compared to other expiration dates. Since market attention is heavily fixated on the election, any shifts in polling data or changes in candidates' campaigns could influence spot prices, according to the firm.
Bitcoin is Trading at $67,080, While the Cryptocurrency Market Experiences a Minor Decline
As of the current writing, Bitcoin is currently valued at $67,080, reflecting a drop of over 1.03% in the last 24 hours. Throughout the day, Bitcoin reached an intraday low of $66,805 and a peak of $68,039. At present, its market capitalization is approximately $1.33 trillion, with a slight uptick in market dominance to 57.65%.
On the other hand, the overall global cryptocurrency market cap has seen a slight reduction of 0.74%, bringing it down to around $2.3 trillion at the moment. Additionally, the trading volume across the cryptocurrency market has decreased by 29.19%, totaling $69.95 billion, as reported by CoinMarketCap.
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