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 former President Donald Trump's openly friendly stance to Vice President Kamala Harris's relatively reserved stance, there has been plenty of drama in the interaction between the cryptocurrency market and US politics.
There have been numerous discussions regarding the outcome of the election and its potential impact on the crypto landscape. QCP Capital, a prominent trading firm, is among the latest to weigh in on the survey results and the effect on cryptocurrencies, especially bitcoin.
QCP Believes bitcoin Price Will Fall After Election Result – Here's Why
In a Nov. 2 report, QCP Capital revealed who hopes that the US elections will be another action to “sell news”, regardless of the result. Like the Nashville bitcoin conference, the trading firm expects many investors to close their btc positions after the election on Tuesday, November 5.
According to QCP, there has been a sustained level of short-term implied volatility above 72 vols for both bitcoin and ethereum in the upcoming elections. As the name suggests, short-term implied volatility tracks the market's expectations about price movements in the near future.
With this metric as high as 72 vols right now, there is a feeling that investors are anticipating major price swings in the bitcoin and ethereum markets after the election. However, an increase in selling biases causes most traders to foresee downward price movements.
QCP highlighted that the increase in selling biases suggests that traders are taking “downside protection”, in the expectation of a market correction. Ultimately, this aligns with the “sell the news” projection, which reflects the fallout from the Nashville bitcoin conference.
After nearly reaching its all-time high price the previous week, btc has seen a notable pullback below $70,000. At the time of writing, the leading cryptocurrency stands at around $68,150, reflecting a 2.2% drop in the last 24 hours.
Binance traders bet on btc futures
In a recent post on x, Ali Martínez x.com/ali_charts/status/1852673454392185199″ target=”_blank” rel=”noopener nofollow”>revealed bitcoin futures traders on Binance have started closing their short positions. According to the on-chain analyst, 52.44% of Binance futures traders have bet heavily on the flagship cryptocurrency.
<img decoding="async" class="aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/11/Like-Nashville-Bitcoin-Conference-US-Elections-Will-Be-a-39Selling.jpeg" alt="bitcoin” width=”1125″ height=”1124″/>
Source: Ali_charts/x
An increase in long positions suggests that more investors are backing the bitcoin price to rise in the near future. Therefore, this latest observation indicates a significant shift in sentiment as the market appears to be leaning towards a more bullish outlook just days before the US election.
It is worth mentioning that this change in Binance traders' positions may be a reaction to the recent drops in the price of bitcoin. Investors may be “buying the dip” and considering the current price as the perfect entry point.
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The price of btc on the daily timeframe | Source: BTCUSDT chart on x/TRMLiD80/" target="_blank" rel="noopener nofollow">TradingView
Featured image from iStock, chart from TradingView
