QCP Capital analysts forecast surge in near-term crypto market volatility

The QCP Capital analysts said that based on the latest implied volatility signals, investors might want to shift their strategy from yield-generating investments to buying options to capitalize on potential large price movements in bitcoin.

Upcoming U.S election could drive market volatility

One analyst pointed to anticipation surrounding the upcoming U.S. presidential election as a driver of volatility in the cryptocurrency market.

"The market continues to price in elevated three-month volatility, motivated by anticipated volatility stemming from the U.S. election," said K33 Research's Ventle Lunde. He added that the options market shows that investors are cautious about short-term price movements, but remain optimistic about bitcoin’s performance in the medium term.

Although near-term price predictions are bearish, Lunde sees an opportunity to buy a dip before a recovery that could begin in October.

"Market fundamentals are solid, and several factors point towards a positive tidal change, making September a ripe opportunity to enter with aggression," the K33 Research analyst said. He also sees momentum rising in the months leading into the U.S. presidential election on Nov. 5.

"A Trump victory would likely be met with a bullish response, whereas a Harris victory would be viewed as a status quo for the industry in the U.S.," he added.