Bitcoin (BTC) critical hours: The calm before the storm.
Bitcoin volatility, which has reached its highest level in the last three months, is following a stable trend as investors await the outcome of the US elections.
Bitcoin volatility is known as a measure of expected price volatility, and according to Bitfinex analysts, this situation may be the “calm before the storm.” In a market report titled “The Calm Before the Storm” dated November 5, Bitfinex analysts stated that implied volatility for Bitcoin options is trading at the following low levels, indicating a lack of confidence in the market. According to CoinGlass data, Bitcoin’s open interest rate also fell significantly as futures positions were closed.
Despite the expectation of increased volatility ahead of the US elections on November 5, Bitfinex analysts stated that many investors are hesitant.
However, the report stated that a large increase in volatility is still expected immediately after the elections, which could either trigger major increases or signal a deep correction for Bitcoin in the event of such a situation.
This report is consistent with other market experts’ expectations that post-election volatility will increase. One trader predicted that Bitcoin could move “at least” 10% in either direction after the election results are announced.
Bitcoin’s market dominance has weighed on altcoins, exceeding 60% on Oct. 29. Analysts at Bitfinex noted that the market is focused solely on Bitcoin in the run-up to the election, indicating that interest in the altcoin market has waned.
“Altcoins experience major declines when $BTC pulls back,” the report said. Popular altcoins like Ethereum ($ETH ) and Solana ( $SOL ) are down about 12% from their recent peaks, while the Ethereum ETF has fallen 40% since its rally.
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