Crypto market will be calm before US election: analysts

Bybit and Block Scholes report a calm crypto market heading into the US elections, with short-term volatility remaining low but bullish.

A new report from Bybit and Block Scholes shared with crypto.news highlights that the crypto market was calm in the weeks leading up to the US election, with short-term volatility lower but an overall positive outlook.

Even though implied volatility for short-term options has fallen, traders are positioning themselves ahead of the election, indicating a bullish trend, according to the report.

Implied volatility measures how much price movement investors expect in the future. Regarding 7-day options, the report noted a sharp decline, indicating less movement is expected in the near term.

Post-election volatility

However, the market shows a steep maturity structure; This means that volatility is higher for options that expire later, such as 14-day options. This reflects investors’ focus on the election and the potential for significant market changes afterwards.

Funding rates, which show the cost of holding positions in futures contracts, remain positive across all tokens, not just Bitcoin (BTC) and Ethereum (ETH).

Positive funding ratios often indicate that more investors are betting that the market will rise. Bitcoin call options, which give investors the right to buy BTC at a certain price, dominate open interest, further emphasizing the bullish outlook.

The report suggests that although the market is calm for now, there could be a significant move after the election and Bitcoin could potentially break the $70,000 mark after November.