Bitfinex sees election as a catalyst for Bitcoin volatility, with prices potentially reaching new highs.
Record-breaking Bitcoin options activity suggests traders are bracing for intense price swings by November.
Institutional moves, like Microsoft's Bitcoin proposal, could bolster asset legitimacy amid election impacts.
The latest report by Bitfinex indicates that Bitcoin may face turbulent weeks ahead. Several factors point to heightened volatility, with the upcoming US presidential election as the major reason.
https://twitter.com/MeowdiniCoin/status/1851164865060098418 Bitcoin Options Market Sees Increased Activity
Options activity for Bitcoin has surged as the election draws closer. Premiums and implied volatility are expected to peak around November 8. Analysts project volatility levels could reach 100% on election day. This rise suggests that significant price swings are likely.
Open interest in Bitcoin options has reached record-breaking levels. The $80,000 strike price expiring on December 27 has seen substantial interest. Investors appear to position themselves for a possible price surge by year-end.
Historical Patterns Point to Strong Q4 Performance
Bitcoin’s history suggests a strong performance in the fourth quarter, especially in halving years. In these years, Bitcoin has shown a median Q4 return of 31.34%. This trend adds hope for a rally despite recent corrections.
Despite a 6.2% drop last week, Bitcoin has maintained resilience. It holds a 30% gain since a September low of $52,756. Analysts view this momentum as a signal of potential gains in the coming months.
Institutional Interest in Bitcoin Gains Ground
Institutions are showing increased interest in Bitcoin. Emory University recently disclosed investments in Grayscale’s Bitcoin Mini Trust and Coinbase shares. This investment marks a step toward broader institutional acceptance of digital assets.
Microsoft will soon consider a proposal to explore Bitcoin as a treasury asset. If approved, even a small allocation from Microsoft’s $76 billion cash reserve could boost Bitcoin’s legitimacy. Such moves suggest a shift toward greater institutional adoption.
Trump Trade Narrative Adds Market Uncertainty
The Trump trade narrative adds to market uncertainty. A Republican win could positively impact Bitcoin and other risk assets, according to some analysts. With election day approaching, the market may experience whipsaw action as this narrative unfolds.
As November approaches, analysts expect intensified volatility for Bitcoin. Investors may need to brace for a dynamic Q4 driven by election results and Bitcoin’s historical seasonality trends.
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