Major Cryptocurrencies Expected to Experience Increased Price Movements

Major cryptocurrencies, such as Bitcoin and Ether, are likely to see larger price movements in the near future, according to analysts.

QCP’s Volatility Momentum Indicator (VMI) was triggered this morning for major cryptocurrencies, indicating heightened market volatility. QCP Capital analysts stated, “This signal is directionally agnostic, meaning it does not indicate spot direction, but suggests larger price movements may occur in the near term.”

Based on the latest implied volatility signals, QCP Capital analysts recommend investors shift their strategy from yield-generating investments to buying options in anticipation of significant price fluctuations in Bitcoin.

Upcoming U.S. Election Could Drive Market Volatility

One analyst highlighted the upcoming U.S. presidential election as a potential driver of volatility in the cryptocurrency market.

Ventle Lunde from K33 Research noted, “The market continues to price in elevated three-month volatility, motivated by anticipated volatility stemming from the U.S. election.” He mentioned that despite cautious investor sentiment in the options market regarding short-term price movements, there’s optimism about Bitcoin’s medium-term performance.

Although near-term price forecasts appear bearish, Lunde believes there is an opportunity to buy the dip before a potential recovery starting in October. He pointed out, “Market fundamentals are solid, and several factors indicate a positive trend, making September a ripe opportunity for aggressive entry.” Lunde anticipates rising momentum as the U.S. presidential election approaches on November 5.

He concluded, “A Trump victory would likely trigger a bullish response, while a Harris victory would likely be viewed as maintaining the status quo for the industry in the U.S.”