According to analysts, major cryptocurrencies such as Bitcoin and Ether are likely to see greater price volatility in the near future.
“QCP’s Volatility Momentum Indicator (VMI) triggered this morning for both Bitcoin and Ether, indicating that the market is entering a period of heightened volatility,” the QCP Capital analyst said. The signal is direction-independent, meaning it does not indicate spot direction, but it does suggest that there may be more price action in the short term, the analyst added.
Analysts at QCP Capital said that based on the latest implied volatility signals, investors would be well-advised to shift their strategies from yield-generating investments to options purchases to take advantage of potential large price moves in Bitcoin.
The upcoming US presidential election could increase market volatility
One analyst pointed to the anticipation surrounding the upcoming US presidential election as a factor driving volatility in the cryptocurrency market.
“that market Continue to price ~ in high three–month volatility, Motivation By ~ expect volatility Stem extraction ~ in that you.S. “It’s an election,” said Bentley Lunde of K33 Research. He added that looking at the options market, investors remain cautious about short-term price movements, but remain optimistic about Bitcoin’s performance in the medium term.
The short-term price forecast is bearish, but Runde sees opportunities to buy in the dip ahead of a possible recovery that could begin in October.
“Market fundamentals are solid, and several factors are pointing to a positive turn of events, making September a good opportunity to enter aggressively,” said the K33 Research analyst. He also sees momentum picking up in the months leading up to the November 5 U.S. presidential election.
“If Trump wins, there’s a good chance we’ll get a bullish reaction, whereas if Harris wins, the status quo for American industry will remain intact,” he added.
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