QCP Capital: Crypto Market May Face Impacts From Stock Market Volatility And US Election Risks
In Brief
QCP Capital released its latest market analysis emphasizing that the stock market rebound is being fuelled by re-leveraging momentum traders.
Singapore-based cryptocurrency trading firm QCP Capital released its latest market analysis, emphasizing that the stock market rebound is being fuelled by momentum traders and trend-followers who are reportedly re-leveraging. Additionally, the lower liquidity this month has intensified this effect.
Furthermore, corporate share buybacks have reached $1.15 trillion this year. Goldman Sachs‘ trading unit has seen unprecedented client demand for purchases when stock prices decline.
The company highlighted that the potential effects on the cryptocurrency market could encompass a risk-on sentiment extending to both cryptocurrency and gold markets, with BTC potentially rising further due to notable demand for call options. Additionally, QCP Capital pointed out that the forthcoming United States presidential election is an important factor to watch. Bitcoin’s skewness indicates increased popularity of put options prior to the election, with a volatility difference of up to 6 percentage points between expiration dates before and after the election.
Furthermore, the Democratic Party currently lacks strong support for cryptocurrencies, whereas the Republican Party intends to end what it describes as the “unlawful and un-American crackdown” on cryptocurrencies. The firm suggests leveraging a defensive, high-yield strategy with limited downside risk for the third quarter regarding the potential market volatility as well as the risks associated with the upcoming election.
BTC And ETH See Price Gains As Crypto Market Caps Surge
Currently, Bitcoin is trading at $60,821, registering an over 4.90% rise in the past 24 hours. During this period, its lowest and highest prices were $57,974 and $61,363, respectively.
This recent price movement has sparked global investor optimism, contributing to a bullish trend. The upward momentum is supported by $61.98 million in inflows into Bitcoin exchange-traded funds (ETFs) as of August 19th, as per the SosoValue data. Additionally, Galaxy Digital recently acquired 400 BTC, which has added buying pressure to the asset.
Meanwhile, ETH is priced at $2,660, marking a 3.05% increase over the past day. The 24-hour low and high for Ethereum’s price were $2,570 and $2,693, respectively.
Recently, Ethereum gas fees have declined to a five-year low, leading to increased speculation about future price movements.
The global cryptocurrency market cap has risen by 4.43%, reaching $2.14 trillion during the same period. Furthermore, the total cryptocurrency market volume rose by 22.40%, reaching $63.58 billion, as per the data from CoinMarketCap.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
