Bitcoin can see potential sparks before the US election – QCP Capital
Key receivers
Trump's comments on US financial obligations to Taiwan sent semiconductor stocks into a tailspin. Biden's endorsement of Harris has introduced new variables to the nature of the crypto market.
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Recent trading data analyzed by QCP Capital suggests that Bitcoin may be set for a major price rally ahead of the upcoming US presidential election, and options traders will be playing upside down.
According to QCP Capital, the US election began with Trump's assassination attempt after Trump said he “continues to make Taiwan pay for US protection.” These statements sparked volatility in the semiconductor stocks sector, amid continued tensions with China.
For crypto, Biden's recent decision to resign and endorse Kamala Harris has led to “misguided crypto moves,” QCP notes. Hours after the decision, Bitcoin was “down more than 1000 points” before hitting $68K, the analysis shows.
Last week, at Mt. Gox fees fluctuate between $61,000 and $67,000. Analysts at QCP Capital said this price action suggests the market has shaken off recent concerns.
The perpetual bond rate has returned to a neutral position, indicating a sense of balance among traders. In the short term, QCP Capital expects Bitcoin to remain bound to a range between $61,000 and $67,000, with significant long positions at the July 26 strike price of $67,000.
Institutional demand for $100,000 call options remained steady in December, indicating growing confidence in the year-end rally. This is related to the chances of Donald Trump's victory in the upcoming election, because the former president recently gave support to crypto.
QCP Capital reports an increase in options market volatility, with out-of-the-money options prices rising significantly over the past 24 hours.
This indicates expectations for worse market movements in the near term. The company continues to leverage trades on Dec. 27 by offering a “BTC ETF Win-Range” trade with 5x returns if Bitcoin sits between $90,000 and $110,000.
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