YEREVAN (CoinChapter.com) — With the U.S. presidential election approaching, analysts are closely watching its impact on the crypto market. David Lawant, head of research at FalconX, cautioned that if the election results are too close to call, it could increase crypto market volatility. In a report dated Nov. 1, Lawant stated,
“Additional volatility…could emerge if results are too close to call.”
His warning points to a period of potential market instability, especially if extended election delays unfold, affecting an already cautious market.
Decision Point: Crypto Braces for the 2024 Elections. Source: David Lawant Report
Traders have faced trading stagnation in the crypto sector since April, hoping for clearer direction once the election concludes. Lawant indicated that markets might find stability and move past the prolonged uncertainty with the election results, marking a potential shift for crypto assets.
Market Relief Expected Following U.S. Election Outcome
Many crypto traders anticipate relief following the U.S. election, regardless of the outcome. Lawant explained,
“Markets appear eager to move past election uncertainty toward firmer ground.”
This expectation reflects the ongoing challenges in the crypto market, which has seen limited movement in recent months.
Since April, Bitcoin has stayed within a narrow range of $53,991 to $73,149, highlighting a period of stalled growth. The election’s conclusion may provide an opportunity for crypto assets like Bitcoin to regain momentum. Lawant’s observations emphasize the importance of clear election outcomes in potentially lifting the crypto market from its current stagnation.
Trump Victory Seen as Potential Catalyst for Crypto Growth
Some investors believe a Trump victory might lead to favorable outcomes for the crypto market, given his previous pro-industry stance. While Lawant noted investor optimism regardless of the election’s outcome, a Trump administration is expected by some to bring more industry-specific support. Swyftx lead analyst Pav Hundal suggested that a Trump win could give the market a “dopamine hit” by creating a more supportive regulatory environment.
Traders and analysts view Trump’s potential second term as an opportunity for clearer crypto policies, which could contribute to stronger crypto market performance.
Bitcoin and Solana Expected to Lead Market Post-Election
According to Lawant, Bitcoin and Solana (SOL) could stand out in the crypto market after the election. Bitcoin, often viewed as the main proxy for crypto assets, may benefit from rising ETF flows anticipated for 2024. This trend could drive new capital into the market, giving Bitcoin an edge.
Solana also emerges as a top contender, with Lawant identifying it as a key player for “profit diversification.” Its position in the blockchain sector and its compelling narrative make it a likely destination for investors seeking growth opportunities beyond Bitcoin.
Cumulative Return Performance for Select Crypto Assets. Source: FalconX Research Market Data Shows Optimism for Post-Election Highs in Bitcoin
Recent data from Deribit reveals a bullish outlook on Bitcoin among options traders, with Open Interest (OI) for call contracts at the end of November concentrated around $80,000. This concentration suggests traders are optimistic about Bitcoin’s price trajectory, especially after election-related uncertainties settle.
Lawant also noted that Bitcoin and Solana are prominent in post-election discussions, while Ethereum (ETH) has been “notably absent,” indicating a possible shift in trader focus. This data points to the strong interest in Bitcoin and Solana as potential leaders in a post-election market landscape.
Long-Term Prospects for Bitcoin Unaffected by U.S. Election Outcome
Long-term confidence in Bitcoin remains high, according to Dan Tapiero, founder of 10T Holdings. Speaking at the Permissionless conference in Salt Lake City, Tapiero suggested that Bitcoin’s future does not depend on the election’s outcome. He indicated Bitcoin could potentially reach $100,000, regardless of the winning candidate.
“I don’t think it really matters. Everything is going up now,”
Tapiero commented, underscoring his belief in Bitcoin’s upward trend beyond political events.
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