As a seasoned crypto investor with over a decade of experience, I’ve learned to navigate the volatile waters of the digital asset market with a keen eye and a steady hand. The recent surge in Bitcoin price, triggered by the US Presidential Election volatility, has once again reminded me that the market can be as unpredictable as the political landscape itself.
On November 5, Bitcoin (BTC) surged by approximately 3.7% due to the increased volatility caused by the ongoing United States Presidential Election, which had a ripple effect on the cryptocurrency market.
BTC price volatility enters with a bang as voting begins
Information gathered from CryptoMoon Markets Pro and TradingView revealed an intense surge in the Bitcoin price, which peaked at approximately $70,300 on Bitstamp.
After making a quick adjustment, Bitcoin (BTC) rapidly went back up to $69,500. However, this trend mainly led to the closing out of short positions due to the sudden spike, which took the market off guard.
In harmony, traders are swiftly purchasing Bitcoins following its recent price fluctuations,” suggested Exitpump to his audience on X.
In a similar vein, some have drawn comparisons between the current landscape and past election years, while trader Moustache ponders over whether Bitcoin may have already hit its low point for now.
He suggested that the price of Bitcoin might have reached its lowest point right before the U.S. election, contrary to what many people thought who believed it would drop further after the event. This idea is supported by the graph he provided for comparison.
“That would be the perfect front run tbh. In 2020, the whole scenario looked very similar.”
Bitcoin closely copies previous election years
According to the recent report from CryptoQuant, an on-chain analytics platform, they have once again highlighted similar trends.
“The Bitcoin price has rallied after the last three US presidential elections,” it summarized.
“The price of Bitcoin was up 37% in 2016 from the election day to the end of the year. The performance in the same period was +98% in 2020 and +22% in 2012. It is worth noting that the price of Bitcoin in 2024 has performed very similar to 2016.”
CryptoQuant went on to describe Bitcoin as “fairly valued.”
This implies that if favorable events occur post-elections, the prices might surge since they are currently undervalued.
Market volatility meanwhile conformed to expectations, as reported by trading firm QCP Capital.
The current value of the cryptocurrency market suggests that there could be a fluctuation of around 3.5% in the price of Bitcoin on the very night of the election, according to their recent update sent to Telegram subscribers today.
“Yet, traders may be underpricing post-election risk: the current lack of volatility premium beyond the November 8 expiry suggests that markets expect a quick resolution, possibly underestimating potential delays or contested outcomes.”
Among those observing it, Charles Edwards, the founder of Capriole Investments – a quantitative Bitcoin and digital asset fund – noticed that Bitcoin was unaffected by the election and instead continued its upward trend.
This week, his argument suggested a clear message when it came to U.S. spot Bitcoin ETF inflows.
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2024-11-05 19:06