U.S. Election Turbulence Triggers Crypto Market Volatility: Bitcoin Falls 1,000 Points, Then Rebounds

The recent political upheaval in the United States has increased volatility in the crypto market. President Joe Biden’s decision to withdraw from the upcoming election caused a brief panic drop in crypto prices. This mirrored the market’s reaction to the attempted assassination of former President Donald Trump two weeks earlier. While prices rebounded, they remain highly volatile.

Investors are now focused on Biden endorsing Kamala Harris, whose potential candidacy is influencing cryptocurrency prices. These events highlight the fragile link between political developments and speculation-driven crypto prices.

U.S. Election & Crypto Trends

A report by QCP noted the US election cycle’s impact on risk assets, initially triggered by Trump’s assassination attempt and his comments about Taiwan. These remarks affected semiconductor stocks, showing the wider market impact of geopolitical tensions.

Biden’s recent announcement and endorsement of Harris caused more turmoil. Bitcoin dropped over 1,000 points but recovered to around $68,000. Rapid fluctuations are expected to continue, especially with Trump’s upcoming appearance at the Nashville Bitcoin conference.

The options market shows heightened volatility, with increased prices for out-of-the-money options, indicating expectations of dramatic market shifts. Traders might consider strategies with topside convexity. With a clearer election picture and potential interest rate cuts, these trades are appealing.

QCP suggests a BTC win-range strategy, offering fivefold returns if Bitcoin stabilizes within a specific range by late December. This trade, maturing on Dec 27, with a range between $90,000 and $110,000, presents a lucrative opportunity amid current volatility.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.