Crypto market insiders are buzzing about the U.S. election on Nov. 5, where a Trump victory could stoke a crypto rally. But the excitement doesn’t come without warnings. Analysts urge caution, as volatility is predicted to spike both before and after election day.
Swyftx analyst Pav Hundal sees a Trump win as an “instant dopamine hit,” signaling potential gains. However, he emphasized that the crypto market could experience wild price swings. Hundal warned that “markets would be more volatile in the days surrounding the election.”
Traders Weigh Volatility as Derive Founder Urges Caution
While some traders seem ready for a bullish outcome, others suggest the odds could flip. Derive’s founder, Nick Forster, cautioned traders to proceed carefully. According to Forster, “while there might be an upside, the risks are equally significant.” He noted a surge in demand for options, showing traders are anticipating significant price swings around election time.
Derive’s options data reveals that call options — generally betting on price increases — are seeing increased buying, hinting at optimism. Forster suggests this trend might align with a “buy the rumor” rally that could fall into a “sell the news” dip depending on the election outcome. He urged those who can to use a “diversified strategy” with hedging options rather than an outright approach.
Bitcoin Inches Near All-Time High as Election Impact Remains Murky
Bitcoin has recently jumped 7.62%, reaching $72,432, inching close to its record high of $73,679. Hundal, however, isn’t fully convinced the election will determine whether Bitcoin reaches $100,000. He believes the upward momentum stems from broader market trends, not solely the political climate.
“Barring some kind of exogenous shock, we’re looking at six-figure Bitcoin prices before year-end. Irrespective of who is in control of the White House,” Hundal stated, echoing sentiments from 10T Holdings founder Dan Tapiero.
Analyst Confidence in Long-Term Bitcoin Growth Despite Election
While speculation builds over short-term impacts, Hundal and other analysts appear optimistic about Bitcoin’s long-term trajectory. Hundal suggested that sophisticated investors, not average traders, are better positioned to navigate election-driven volatility. He believes timing trades around the election is less essential for most investors, with 2025 holding greater promise for sustained growth.
Echoing this sentiment, FalconX’s head of research David Lawant shared a similar view, reporting Bitcoin is “likely to perform well regardless of the election outcome.” With speculation rampant, some see the election as a short-term variable in an otherwise bullish crypto market.
Drop Your 2 Sats 👇
You must join the army to mint a comment.