Calm Before the Storm? Predictions for the Crypto Market Ahead of the US Election

The reciprocal connection between crypto and politics is becoming increasingly noticeable as the election in the United States draws near. As the day of the vote approaches nearer, analysts worry about the possible effects that it could have for Bitcoin and other alternative cryptocurrencies. The markets are demonstrating an abnormally placid attitude, which has resulted in the excitement remaining muted for the time being. In spite of the fact that a study from Bybit and Block Scholes indicates a decrease in short-term volatility, positive sentiment continues to maintain its position.

A peculiar slowdown in the cryptocurrency market has been observed in the final few weeks leading up to the election in the United States. The research that was compiled by Bybit and Block Scholes indicates that bitcoin options are exhibiting a decreased implied volatility for seven-day expirations. This indicates that investors have low expectations for movement in the immediate term. The fact that this is the case does not, however, imply that traders are doing nothing:

After 14 days, the options structure demonstrates a significant increase, which indicates that the level of uncertainty is growing.

Rates of financing, which are measures of the cost of holding futures contracts, continue to be in a favourable position.

Open interest in Bitcoin call options continues to be the most prevalent.

According to the forecasts of a few cryptocurrency analysts, the current calm may be nothing more than a pause before a spike that occurs after the election.

A watchful check is being kept on the industry titans by investors, despite the fact that the situation appears to be tranquil. Due to the fact that the election is getting closer, Bitcoin and Ethereum options are displaying a semblance of optimism. When funding rates are positive, it indicates that speculators are continuing to gamble on an increase in price.

Nevertheless, "it is unwise to underestimate the power of electoral uncertainty," advises a knowledgeable individual.

As a result of this circumstance, the price of bitcoin could go up to more than $70,000, and the price of ether could even experience major changes.

Therefore, if the lull is in fact existent, it appears to be a precursor to a storm that the markets are already trying to get ready for facing.

It is also important to note that after a historic September, Bitcoin is facing a significant obstacle in the form of the upcoming elections in the United States.

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