Bitcoin One Step Away From New Highs as U.S. Election Looms
Overview
1. In the market, BTC surged past 73k on Tuesday amid rising momentum in the U.S. election and strong inflows into Bitcoin spot ETF, bringing it within reach of its all-time high. Currently, BTC is priced around $72,000, with ETH trading near $2,650.
2. BTC DVOL has risen to 59, while ETH DVOL is close to 63. BTC front-end implied volatility surged in anticipation of the election, with an expected 7% move. Skew term structures have steepened, as front-end call skew reduces as the bullish outcome gets priced in, while longer-term call skew remains steady, indicating a positive outlook.
3. Regarding altcoin implied volatility, SOL’s weekly IV has increased to 83, DOGE’s weekly IV has surged to 130, and ORDI’s weekly IV is near 124. This week, the top 3 most popular altcoin options traded on Coincall were "Buy BNB-29NOV24-715-C," "Buy DOGE-29NOV24-0.200-C," and "Buy XRP-8NOV24-0.57-C."
4. This Friday, approximately $2.37 billion in crypto options are set to expire. Among them, BTC options have a notional value of $2.01 billion, with a Put/Call Ratio of 0.9 and a max pain price of $69,000; ETH options have a notional value of $353 million, with a Put/Call Ratio of 0.66 and a max pain price of $2,550.
Trade Idea
Trump's recent media appearances and endorsements from figures like Elon Musk have boosted bullish sentiment in BTC and altcoins like DOGE, which rose 18.5% this week. Consider buying call options on altcoins with low implied volatility and delayed price action to capitalize on this momentum.
Buy 10,000x XRP-8NOV24-0.55-C @ $0.0075
