This week promises to be extremely busy for global financial markets and investors. Next Tuesday, the US presidential election will be held, which increases expectations of possible consequences for the country's economy. Earlier key economic reports will also be released, which adds uncertainty. At the same time, tensions in the Middle East continue to rise,
The situation between Israel and Iran escalated over the weekend. Amid the uncertainty, volatility in financial markets remains high. The VIX index, which reflects the level of fear in the market, closed at a local high last Friday, showing that traders are wary of the potential consequences of both the election and the escalation in the Middle East. If indicators continue to rise, this could create opportunities for short-term strategies related to selling volatility after the election and through the end of the year.
In addition, Thursday is expected to see the release of the Consumer Spending Index (PCE), a key inflation indicator for the Fed. On Friday, the US jobs report will be released and the Federal Open Market Committee's (#fomc ) rate decision will be announced immediately after the election. Such a saturation of events may contribute to an increase in volatility, which in turn may affect cryptocurrency assets.
In the cryptocurrency market, there are tendencies to increase premiums on option contracts, especially for bitcoin ($BTC
). Here, volatility has risen by 15% over the past month, and for ether ($ETH
) by 10%. According to Amberdata analysts, this may indicate high uncertainty among traders ahead of the election, especially in relation to bitcoin. At the same time, there is a “positive slope” in the sector of #BTC☀ and ETH options, which may indicate growing optimism about their dynamics after the appointment of a new head of the United States.