It’s election season in the United States, and Bitcoin and the broader cryptocurrency industry have never been more involved in politics. From the friendly nature of then-President Donald Trump to the reserved position of Vice President Kamala Harris, there has been some drama in the interaction between the crypto market and United States politics.
There has been a lot of discussion about the outcome of the election and its potential impact on the crypto landscape. QCP Capital, a popular trading company, is among the latest to measure the results of the polls and the impact on crypto, especially Bitcoin.
QCP Thinks Bitcoin Price Will Fall Following Election Result – Here’s Why
In a report dated November 2nd, QCP Capital stated that it expects the US election to be another act of “selling the news” regardless of the outcome. Like the Nashville Bitcoin conference, the trading company expects many investors to close their BTC positions following the election on Tuesday, November 5.
According to QCP, there has been a sustained level of short-term volatility above 72 volts for both Bitcoin and Ethereum in the upcoming election. As the name suggests, short-term volatility tracks the market’s expectations of price movements in the near future.
With this metric reaching 72 vols at the moment, there is a feeling that investors are expecting big price changes in the Bitcoin and Ethereum markets after the election. However, the increase in placing skews many traders who foresee a downward price movement.
The QCP emphasized that the increase in put skews indicates that traders are taking “lower protection,” in anticipation of a market correction. Finally, this corresponds to the “sell-news” hypothesis, which reflects the outcome of the Nashville Bitcoin conference.
After nearly reaching its all-time high last week, BTC experienced a significant pullback below $70,000. As of this writing, the first cryptocurrency is around $68,150, which represents a 2.2% decrease in the last 24 hours.
Binance Traders Go Late on BTC Futures
In a recent post on X, Ali Martinez revealed Bitcoin futures traders on Binance have started to close out their short positions. According to an on-chain analyst, 52.44% of Binance futures traders have now gone long on the flagship cryptocurrency.
Source: Ali_charts/X
The increase in long positions suggests that many investors are backing the price of Bitcoin to rise in the near future. Therefore, this latest view shows a significant change in sentiment, as the market seems to be leaning towards a more positive outlook in the days before the US election.
It is worth mentioning that this change in the positions of Binance traders may be a reaction to the recent dip in the price of Bitcoin. Investors may be “buying the dip,” viewing the current price as the perfect entry point.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingViewÂ
Featured image from iStock, chart from TradingView