As the American elections draw near, the intersection between cryptocurrency and politics becomes increasingly evident. Experts are closely monitoring the potential impacts of the election on Bitcoin and other altcoins, although the current market remains surprisingly calm.
A recent report by Bybit and Block Scholes highlights a decrease in short-term volatility in the crypto market, with options on Bitcoin showing reduced implied volatility for seven-day expirations. This suggests that there are low expectations for significant short-term movements. However, the options structure indicates a rise in uncertainty beyond the 14-day mark, keeping traders on their toes.
Despite the apparent tranquility, investors are keeping a close watch on major cryptocurrencies like Bitcoin and Ethereum. Options on these digital assets reveal a latent optimism, with positive funding rates indicating that speculators are still betting on price increases. However, experts caution against underestimating the impact of electoral uncertainty, which could lead to significant price movements post-election.
Some crypto analysts predict a potential post-electoral rally, with Bitcoin prices potentially surpassing $70,000 and Ethereum also experiencing significant movements. The calm before the storm in the crypto market seems to be a prelude to potential market turbulence as the elections approach.
It is worth noting that Bitcoin faces a significant challenge with the American elections on the horizon, following a historic September for the cryptocurrency. The markets are already preparing for potential volatility and uncertainty in the coming weeks.
Overall, while the current calm in the crypto market may seem reassuring, it is clear that investors and traders are bracing themselves for potential stormy conditions as the American elections unfold. The impact of political events on the cryptocurrency market remains a key area of interest for analysts and investors alike.