On-chain analytics platform QCP Capital has commented on the upcoming US elections and their impact on Bitcoin.
According to data provided by QCP, short-term volatility peaked in election day futures. There was a difference of 10 volatility points compared to the previous maturity, and interest in call options outweighed put options in the market.
Despite this, Bitcoin still hasn’t managed to break past the $70,000 peak, trading around 8% below its all-time high.
On the other hand, the stock market came to the fore with a different picture. The S&P 500 index has reached record levels and 20% of companies are expected to announce their earnings reports. The options market, on the other hand, has shown a tendency towards put options, and it has started to be priced in that the index could move 1.8% on November 6, the day after the election.
The correlation between stocks and cryptocurrency markets has reached a historical high of 0.83. Given the correlation’s tendency to revert to the mean and the divergent positions in the options markets, this could signal a turning point, it said.
The election process creates a zero-sum scenario for the stock market, with the winning sectors dependent on the election result. However, given that both presidential candidates are more crypto-friendly than the previous administration, any weakness in stocks could cause capital to flow into crypto.
Stay tuned for new information.
