Bitcoin Volatility Expected This Week Amid Trump-Harris Debate and CPI Reading

Bitcoin Market Volatility in Focus

This week is marked by heightened volatility expectations in the Bitcoin market, driven by two critical events: the presidential debate between Donald Trump and Kamala Harris, and the latest Consumer Price Index (CPI) data release prior to the Federal Reserve's rate decision on September 18.

Impact of Debate on Bitcoin Pricing

According to analysts from QCP Capital, Bitcoin has seen stability following last week's fluctuations; however, implied volatility remains high. Market participants are closely watching the candidates' performances, as the debate's outcome may have substantial repercussions for the cryptocurrency sector.

• If Trump wins, Bitcoin could target new heights between $80,000 to $90,000 by Q4.
• In contrast, a victory for Kamala Harris may lead to a dip, pushing Bitcoin to test levels around $30,000 to $40,000.

Current Trader Sentiment and Positioning

As for the derivatives market, caution prevails among traders after Bitcoin and ether experienced declines of 5% and 8%, respectively. Risk reversals currently favor put options for both Bitcoin and ether through October. However, there remains a long-term bullish sentiment, with traders making strategic bullish bets, including significant purchases of Bitcoin call options aimed for March 2025.

The recent rebound of Bitcoin from $52,500 to about $55,500 has sparked optimism, suggesting some institutions believe the bottom has been reached, seizing the moment to strengthen their bullish positions by year-end.