According to analysts, major cryptocurrencies, such as bitcoin and ether, are expected to see larger price movements in the near future.
“QCP’s Volatility Indicator (VMI) was triggered this morning for major cryptocurrencies, both bitcoin and ether, indicating that the market is entering a period of increased volatility,” QCP Capital analysts said. This signal is directionally agnostic, meaning it does not indicate the direction of the spot, but suggests that larger price movements are likely in the near term, the analysts added.
QCP Capital analysts said that based on the latest implied volatility signals, investors may want to shift their strategy from yield-generating investments to buying options to capitalize on potential large price movements in bitcoin.
Upcoming US elections could increase market volatility
An analyst has pointed out that anticipation surrounding the upcoming US presidential election is driving volatility in the cryptocurrency market.
“THE walk continue has price In pupil three–month volatility, motivated by anticipated volatility drifting Since THE You.S. “election,” said Ventle Lunde of K33 Research. He added that the options market shows that investors are cautious about short-term price movements, but remain optimistic about bitcoin’s performance in the medium term.
Although the short-term price outlook is bearish, Lunde sees an opportunity to buy the dip ahead of a rally that could begin in October.
“Market fundamentals are strong and several factors point to a positive trend change, making September a good time to enter the market aggressively,” said the K33 Research analyst. He also sees momentum building in the months leading up to the November 5 U.S. presidential election.
“A Trump victory would likely be met with an optimistic reaction, while a Harris victory would be seen as business as usual for the industry in the US,” he added.
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