Uncertainty surrounding tonight’s debate between Donald Trump and Kamala Harris is causing volatility in both the U.S. stock and crypto markets, according to analysts at QCP Capital.
Current State of the Cryptocurrency Market
While the overall cryptocurrency market cap has seen a modest gain of 1.9% in the past 24 hours, major cryptocurrencies like Bitcoin and Ethereum remain under pressure with weekly declines of 3% and 6%, respectively.
Impact on Traditional Markets
The impact of the debate is also being felt in traditional markets. U.S. stocks were volatile in early trading, with the S&P 500 giving up some of its early-week gains and falling 0.42%. The Dow Jones Industrial Average lost slightly more, down 0.5%, or about 200 points.
Forecasts and Expectations
The firm also reported significant activity in the derivatives market, with volatility expected to increase in the Trump-Harris debate. “We saw significant buying in Bitcoin options expiring on September 11, with 400 contracts at $57,500, suggesting a price movement of more than 3.3% from the current point around $56,800 by tomorrow’s expiration,” the analysts added.
Despite the current uncertainty, QCP Capital remains optimistic about the fourth quarter and maintains a 'structurally bullish' outlook.
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