Bitcoin (BTC) surged as much as 3.7% on November 5 as U.S. presidential election volatility hit cryptocurrencies hard.
As voting begins, there will be significant BTC price volatility.
Data from Cointelegraph Markets Pro and TradingView shows the price of BTC on Bitstamp soaring to nearly $70,300.
A subsequent correction quickly brought BTC/USD back to $69,500, but it was mostly sell positions that were liquidated as the sudden surge took the market by surprise.
“All of a sudden we were buying spot all at once,” popular trader Exitpump told X’s followers about the latest BTC price action.
Some compared the situation to previous election years, with fellow trader Mustache considering the possibility that Bitcoin may have already hit a local bottom.
“Imagine if BTC bottomed right before the US elections. “The majority thought it would happen later,” he wrote alongside a comparison chart.
“It would be a perfect front run. In 2020, the overall scenario looked very similar.”
Bitcoin closely copies previous election years.
In its latest weekly report seen by Cointelegraph, on-chain analytics platform CryptoQuant continued the similarities.
relevant: Bitcoin price needs 2 months to recover ‘macro trend’ – Outlook
“Bitcoin prices have rebounded since the last three US presidential elections,” he summarized.
“From Election Day 2016 to the end of the year, the price of Bitcoin rose 37%. Performance over the same period was +98% in 2020 and +22% in 2012. It is noteworthy that the Bitcoin price in 2024 performed very similarly to 2016.”
CryptoQuant went on to describe Bitcoin as “quite valuable.”
“This means that if there is a positive catalyst after the election, prices could bounce back because they are not overvalued,” he added.
Meanwhile, market volatility was in line with expectations, as reported by trading firm QCP Capital.
“Crypto markets are currently pricing +/-3.5% of the BTC spot movement on Election Day,” he noted in his latest bulletin sent to Telegram channel subscribers this morning.
“But traders may be underestimating post-election risk. The current lack of volatility premium beyond the November 8 expiration suggests markets may be expecting a quick resolution and underestimating a potential delay or contested outcome. “
Charles Edwards, founder of Capriole Investments, a quantitative Bitcoin and digital asset fund, was among those who saw Bitcoin withdraw from the election to continue its strong run.
He argued that inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) this week spoke for themselves.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.