Bitcoin Sees Muted Volatility As Investors Await US Election Outcome (Bitfinex)

With the US presidential election just hours away, crypto investors are exercising caution, which is evident in the low volatility of the bitcoin options market.

Analysts at crypto exchange Bitfinex reported that crypto investors have adopted a wait-and-see approach, expressing the market’s lack of confidence in BTC’s current price movements.

Investors await the election results

Crypto analysts generally expected higher volatility ahead of the US presidential election on November 5; however, investors seem hesitant to take action in the market. The front end of the options market is facing significant pressure and the implied volatility of bitcoin options is in the 40s.

Bitfinex explained that the initial volatility is the implied volatility of options contracts closest to their expiration dates. This often indicates the crypto market’s expectations for short-term price fluctuations.

“Another possible interpretation of the current low front-end volatility ahead of Election Day is that it could indicate deeper concern for Bitcoin and altcoins, as shown in both BTC’s current correction and more significant corrections seen in altcoins. Additionally, with pending options approval for Bitcoin spot ETFs, any change in sentiment around these developments could further influence volatility and trading activity.” , the exchange added.

While implied volatility remains subdued and investors continue to exercise caution, Bitfinex analysts expect the volatility structure to change between November 5-8. This prediction is fueled by expectations of significant price action during the week, although there is no certainty that the market will move. in any specific direction.

If the market does not experience the expected volatility, Bitfinex says that there would likely be a bigger problem and that BTC may witness a much deeper correction.

Trump still leads Polymarket

Several predictions of BTC at $100,000 by the end of the year may materialize in the coming weeks, depending on the outcome of the election. The general market consensus remains that a Republican Donald Trump win would be bullish for BTC, while a Democratic Kamala Harris win could be bearish.

Meanwhile, data from blockchain prediction platform Polymarket shows that Trump’s odds of winning the election are 62.5%, while Harris’ odds are 37.6%. Data from CoinMarketCap showed BTC trading at $68,628 at the time of writing.

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