QCP Capital: This week's US election results will determine the direction of the crypto market, and it remains cautious
On November 4th, QCP Capital, a Singapore-based crypto investment institution, wrote: "As Polymarket's odds are getting closer to the actual poll results, the race between Harris and Trump is getting hotter. Although Polymarket's odds are still more favorable to Trump at 55%, this is already a significant decrease from 66% a week ago. The lower price volatility over the weekend and the reduction of positions in leveraged perpetual contracts on various exchanges from 30 billion to 26 billion suggest that the market remains cautious.
So does this portend a period of calm before breaking out of months-old price ranges and heading for record highs? The options market seems to think so, as we have seen an increase in high positions since last Friday, with large purchases of options expiring at the end of November with a call-over price of $75,000. At the same time, with actual volatility remaining at 40% and implied volatility climbing above 87% on Friday, election date-related options positions have also increased.
We expect spot prices to move in this range until the election results become clearer this week. A Trump win would likely trigger an immediate price increase, and a Harris win could trigger a fall. "