🌪️ The US Presidential Election is approaching, and Bitcoin's volatility is increasing!
As the US presidential election nears, the Bitcoin (BTC) market is set to experience a period of significant volatility. Analysts at Bitfinex mentioned in their latest weekly report that the uncertainty of the election, the 'Trump trade' narrative, and the seasonal performance of Bitcoin in the fourth quarter will together create a 'perfect storm' for the BTC market.
Currently, the crypto community generally believes that if Trump is elected, it will be good news for Bitcoin, as he is a supporter of cryptocurrency and has promised to provide favorable policies for the industry. Although Kamala Harris from the Democratic Party was previously not very enthusiastic about cryptocurrency, she has recently begun to show interest in digital assets.
The market widely expects that regardless of the election outcome, the premium and volatility of US stocks and BTC options will rise in the first week of November. In particular, the correlation between the probability of Trump being elected and the upward trajectory of Bitcoin is continuously strengthening, suggesting that BTC may experience greater volatility than other risk assets.
Recently, Bitcoin has begun to experience wild fluctuations, with the asset rapidly dropping by 6.2% last week before recovering somewhat, and currently, the price has reached around $72,400. Additionally, options activity is surging, especially for options with exercise prices above $100,000, which are expected to reach a volatility of 87.55% by November 8.
💬 Finally, what do you think about Bitcoin's volatility during the US presidential election? How do you think the election results will impact the Bitcoin market price?
