US Election Day #Bitcoin Calm before the storm

Volatility in Bitcoin has weakened as traders await the outcome of the United States elections. Analysts say this could just be the “calm before the storm.”

In a market report titled “Calm Before the Storm?” dated November 5, analysts said volatility for Bitcoin options is currently in the 40s, suggesting market confidence is lacking in significant price action.

Bitcoin’s volatility index reached a three-month high of 65.7 on November 3. The metric is currently at 63.2, according to data from Derebit.

CoinGlass data also showed Bitcoin’s open interest falling, with traders closing both short and long positions on the asset ahead of the election.

“Despite the general expectation that volatility will increase in the lead up to the US election on November 5, many market participants are hesitant to take action, adopting a wait-and-see approach,” the analysts said.

However, the report noted that a large increase in volatility is expected immediately following the election, which could “fuel large moves” or, if not, be a warning sign of “a much deeper correction for Bitcoin on lower timeframes.”

The report is in line with some other market experts’ broader expectations of increased volatility. One trader shared that he expects Bitcoin to move “at least” 10% in either direction after the election.