As the U.S. election approaches, crypto analysts warn that a tightly contested race could unleash unexpected market volatility. Bitcoin and Solana emerge as potential outperformers, but traders brace for price swings amid election uncertainty.
Analyst Warns of Potential Volatility if U.S. Election Is Too Close to Call
An analyst has cautioned that a close race for president could cause some surprise volatility, even if many crypto traders are trying to predict the market's trajectory based on the results of the forthcoming U.S. election.
"Additional volatility, however, could emerge if results are too close to call and it takes too much time to reach an outcome," said FalconX head of research David Lawant in a market analysis from November 1.
Markets Eager to Move Past Election Uncertainty
Lawant made the observation that traders will feel a sense of relief after the U.S. election concludes, as it will pave the way for the markets to resume their "directionless" trajectory that began in April.
"After six months of directionless trading, markets appear eager to move past election uncertainty toward firmer ground," he stated.
There has been little movement in the $53,991–$73,149 price range for Bitcoin since April.
Investors Anticipate Positive Outcomes Regardless of Winner
Lawant stressed that investors are looking forward to "positive outcomes" regardless of the U.S. presidential decision on November 5, but that some think a Trump victory may bring "stronger gains" because of his more explicit pro-industry promises.
Also, "a Trump victory would likely provide a dopamine hit," as lead analyst Pav Hundal of Swyftx previously stated in an interview with Cointelegraph.
Bitcoin Poised to Break All-Time High Post-Election
Regardless of the result of the election, options traders are positive about Bitcoin breaking its all-time high in the weeks after it, Cointelegraph shares.
According to recent statistics from cryptocurrency exchange Deribit, the amount of Bitcoin Open Interest (OI) for call contracts that are set to expire at the end of November is "concentrated around $80,000." OI is defined as the value or quantity of outstanding futures contracts that have not yet expired.
Solana Emerges as Potential Outperformer
Solana, according to Lawant, is "in conversations as potential outperformers" with Bitcoin.
“BTC, serving as crypto's proxy, could further benefit from ETF flows—2024's primary source of new capital. SOL's strong narrative positions it as a likely destination for profit diversification.”
"Notably absent from most discussions," according to Lawant's assertion about Ether.
Bullish Outlook Prevails Despite Election Outcome
Just weeks ago, 10T Holdings founder Dan Tapiero predicted that Bitcoin and other cryptocurrencies will continue their bullish trajectory and reach $100,000 per coin regardless of the U.S. presidential election outcome. This analysis follows Tapiero's declaration.
"I don’t think it really matters. Everything is going up now. The election will pass," Tapiero said during a panel talk at the Permissionless conference in Salt Lake City, Utah.