🌪️ The US presidential election is approaching, and Bitcoin's volatility is increasing!
As the US presidential election draws near, the Bitcoin (BTC) market is set to enter a period of intense volatility. Analysts from Bitfinex mentioned in their latest weekly report that the uncertainty surrounding the election, the 'Trump trade' narrative, and Bitcoin's historical seasonal performance 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 would be good news for Bitcoin, as he is a supporter of cryptocurrencies and has promised favorable policies for the industry. Although the Democratic Party's Kamala Harris was previously not very interested in cryptocurrencies, she has recently begun to show interest in digital assets.
The market widely expects that regardless of the election outcome, the US stock market and BTC's options premiums and volatility will rise in the first week of November. Notably, the correlation between the likelihood of Trump being elected and Bitcoin's upward trajectory has been strengthening, suggesting BTC may experience greater fluctuations than other risk assets.
Recently, Bitcoin has begun to experience intense volatility, with the asset rapidly dropping 6.2% last week, followed by a rebound, and the current price has touched around £72,400. Additionally, options activity is surging, particularly for options with exercise prices exceeding £100,000, which are expected to reach a volatility of 87.55% on November 8.
💬 Finally, what are your thoughts on Bitcoin's volatility during the US presidential election? How do you think the election outcome will impact the Bitcoin market price?
