As the United States approaches its pivotal election on November 5, many crypto traders are keenly watching for potential market shifts. However, analysts warn that a close race between presidential candidates could lead to unexpected volatility in the crypto markets.
David Lawant, head of research at FalconX, highlighted in a November 1 report that “additional volatility” could arise if the election results are too close to call, delaying a clear outcome. He noted that after months of “directionless trading” since April, traders are eager to move past the uncertainty surrounding the election. Lawant explained that Bitcoin has been trading within a narrow range of $53,991 to $73,149 during this period, and market participants are hoping for a definitive shift once the election concludes.
While investors are optimistic about favorable outcomes, some believe that a victory for Donald Trump could lead to “stronger gains” for cryptocurrencies due to his pro-industry commitments. Swyftx lead analyst Pav Hundal echoed this sentiment, suggesting that a Trump win might provide a “dopamine hit” for the markets.
Interestingly, options traders seem to be bullish on Bitcoin's potential to break its all-time high shortly after the election, irrespective of the outcome. Recent data from crypto exchange Deribit reveals that Bitcoin's Open Interest (OI) for call contracts expiring at the end of November is heavily concentrated around $80,000, indicating strong investor confidence.
Lawant also pointed out that alongside Bitcoin, Solana is generating buzz as a potential outperformer in the current market landscape. He remarked, “BTC, serving as crypto's proxy, could further benefit from ETF flows—2024's primary source of new capital. SOL's strong narrative positions it as a likely destination for profit diversification.”
In contrast, he noted that Ether has been noticeably absent from most discussions among investors.
The commentary follows remarks from Dan Tapiero, founder of 10T Holdings, who stated that the election outcome would likely not alter the bullish trajectory for cryptocurrencies like Bitcoin, which could soon reach $100,000 per coin. Tapiero confidently stated, “I don’t think it really matters. Everything is going up now. The election will pass.”
As the election draws near, traders and investors alike are preparing for potential market shifts. The outcome will not only influence short-term volatility but may also set the tone for the crypto market's direction heading into 2024. With rising optimism about Bitcoin and emerging narratives around Solana, the crypto community is poised for significant developments in the coming weeks.
November 2024, Cryptoniteuae