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Huge Volatility Risks in BTC
Bitcoin prices are trading higher today into the US elections as the market stabilises on the back of four days of heavy selling. The retreat in BTC has been linked to profit taking on the October rally, uncertainty ahead of the US elections with the risk of major volatility.
‘Uptober’ is Over
Over October, BTC pushed higher as traders priced in a higher risk of Trump winning the elections. A return to the so called ‘Trump trade’ dynamic saw USD rallying as EMFX and commodities fell. Crypto swap swept up in the rally on the perspective that Trump is the more pro-crypto candidate, with BTC expected to benefit firmly if he wins today. However, uncertainty in recent days and a dip in Trump’s polling results linked to some campaign gaffes have seen BTC longs squeezed.
Record ETF Outflows
Indeed, on Monday, industry data reflected record ETF outflows from BTC with a capital exodus of $580 million, the largest one-day outflow since ETF began trading. This outflow reflects a move amongst institutional investors to a defensive position ahead of the elections given the significant risk of big volatility in the coming days. If the voting looks to be going in Trump’s favour, BTC is expected to rally while signs of a Harris win should pull crypto prices lower near-term.
Technical Views
BTC
The rally in BTC has stalled for now into the 74,355 highs with price since pulling back below the 69,355 level. Above 65,025, focus remains on a fresh push higher and eventual breakout. Below, focus turns to 60,695 and the bull channel lows as next support.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.