QCP Capital, a Singapore-based digital asset trading firm, has highlighted the potential for increased volatility in the cryptocurrency market as a result of the upcoming debate between former President Donald Trump and Vice President Kamala Harris, Bitcoin.com News reports.
The debate, set for September 10, 2024, is expected to have a significant influence on crypto price movements, given the high-profile nature of both political figures.
In its latest market report, QCP Capital noted that while crypto prices have recently stabilized following a period of decline, implied volatility remains elevated. The firm points out that traders are preparing for possible price swings in the lead-up to two key events: the Trump-Harris debate and the US Consumer Price Index (CPI) release on September 11, 2024. These events are crucial, as the CPI report comes just one week before the Federal Reserve is set to make a decision on interest rates, further heightening market uncertainty.
QCP’s report indicates a cautious sentiment in the crypto market, with options for major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) skewed toward puts, signaling concerns over potential downside risks. Despite the uncertainty in the short term, QCP remains optimistic about the long-term outlook for crypto assets. The firm notes that traders are using the current market dip to execute significant long-term bullish trades, with some call option purchases targeting Bitcoin prices as high as $120,000 by March 2025.
Overall, while short-term volatility may persist due to upcoming political and economic events, QCP Capital believes that market participants continue to show confidence in the long-term potential of cryptocurrencies.
