The next few weeks will see bitcoin (BTC) experience massive volatility due to uncertainty surrounding the United States presidential election, the \u201cTrump trade\u201d narrative, and the Q4 seasonality performance the asset has witnessed in past years.<\/p>\n
Analysts at the crypto exchange Bitfinex said in a weekly report<\/a> that these factors would create a \u201cperfect storm\u201d for BTC; however, they also promise exciting times ahead for the leading cryptocurrency, regardless of narratives making the rounds in the industry.<\/p>\n The U.S. presidential election has a growing influence on bitcoin\u2019s price movements in the near term. The crypto community considers<\/a> a Republican victory a bullish move for BTC, while a win for the Democratic Party means the opposite. This is because Republican candidate Donald Trump is pro-crypto and promised favorable policies for the budding industry upon becoming president.<\/p>\n On the other hand, the Democratic candidate, Kamala Harris, who serves as the Vice President of the current administration, which is leaning toward anti-crypto actions, only started warming up<\/a> to digital assets recently as the heat of the elections intensified.<\/p>\n The general market consensus is that option premiums and volatility for the U.S. stock market and BTC are bound to rise by the first week of November after the election results are released.<\/p>\n However, with the increasing correlation between Trump\u02bcs election odds and bitcoin\u02bcs upward trajectory, BTC may likely experience greater volatility than other risk assets. This is the origin of the Trump trade narrative, which reflects the market\u2019s belief that bitcoin\u2019s trajectory depends on the election outcome.<\/p>\n \u201cRegardless of the election outcome, short-term volatility is expected to be higher than usual, though we remain confident in longer-term price appreciation,\u201d Bitfinex stated.<\/p>\n Bitcoin has already begun experiencing intense volatility. Last week, the asset saw a swift 6.2% plunge before recovering. On Monday, the cryptocurrency surged past $70,000 and had touched $71,200 at the time of writing, per data<\/a> from CoinMarketCap.<\/p>\n Noteworthily, Bitcoin is seeing a surge in options activity. Implied volatility is expected to peak on November 8 at 100 vol for strike prices over $100,000 for BTC, and options expiring on key dates around the election are driving higher premiums and fuelling the surge in activity.<\/p>\n Meanwhile, BTC has shown remarkable resilience since its fall below $54,000 in early September. The asset is on track to closing October in the green, just like in previous years.<\/p>\n The post Massive Bitcoin Volatility Imminent as U.S. Presidential Election Draws Near: Bitfinex<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The next few weeks will see bitcoin (BTC) experience massive volatility due to uncertainty surrounding the United States presidential election, the \u201cTrump trade\u201d narrative, and the Q4 seasonality performance the asset has witnessed in past years. Analysts at the crypto exchange Bitfinex said in a weekly report that these factors would create a \u201cperfect storm\u201d […]<\/p>\n","protected":false},"author":0,"featured_media":16342,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-16341","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/16341"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16341"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/16341\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/16342"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}The \u201cTrump Trade\u201d Narrative<\/h2>\n
Bitcoin Options See Surge in Activity<\/h2>\n