Crypto options traders claim that Bitcoin (BTC), the cryptocurrency, is a good investment. primed It will surpass its previous record high regardless of the outcome of the US Presidential election.
US Election Results Are Not Significant
The tone of crypto option traders has changed slightly as US presidential election draws closer. This is due to the potential impact on the digital asset markets.
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Options traders have been betting more on the $80,000 BTC at the end of the month, regardless of the outcome of the presidential election.
David Lawant said the following:
According to the consensus of the market, Bitcoin’s performance is expected to be good regardless of election results. According to our analysis, the option activity in relation to the forthcoming elections shows a significant topside bias.
In crypto circles, it is generally believed that a Trump victory would be beneficial to the digital assets ecosystem. Likewise, a Harris triumph would probably continue Biden’s hostile attitude toward cryptocurrency.
Harris is trying to alter this perception with crypto-voters. Recently, she promised that a regulatory framework would be created to encourage emerging technologies, such as AI, and digital assets.
Another factor, such as the interest rate cut by the US Federal Reserve, or the cooling down of inflation in the US, could be attributed for the optimism that Bitcoin will reach a higher ATH by the end year.
Remember that Bitcoin’s current peak value was $73,797 back in March 2024. This is largely due to the demand anticipated for digital assets following the US Securities and Exchange Commission approval of Bitcoin ETFs.
BTC, however, dropped from $53,956 to just under $53,000 in September, due to the rising rates of interest, and before the Fed announced its rate reduction. Bitcoin is trading strongly above $66,000 since that time.
Bitcoin Call to Put Ratio is Trending Lower
Deribit’s data shows that the put/call ratio has been trending downwards towards the end of this year.
A low put-to call ratio indicates that traders buy more put options than they do call options. They are therefore confident that BTC’s price will rise in the near future.
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Yev Feldman co-founder SwapGlobal is an institution-grade trading platform that offers crypto options.
We often see traders buying puts and calls around 66k. This means that they are constantly repositioning for breakouts on either side. It is unlikely that the market will collapse after the election. So, going up seems more sensible.
Open interest in BTC call option expiring November 29 is also largely concentrated at $80,000. The second most popular strike price, $70,000, is $70,000. Call options that expire on December 27 have strike prices between $80,000 to $100,000.
Latest reports suggest The retail interest for BTC was on an uphill trajectory. This indicates the market’s risk mode, after having been range bound most of the year. Lawant concluded.
Investors are using the option market to capture potential upside, rather than as an insurance against possible downside.
Fears of a possible terrorist attack downside Geopolitical tensions are a major cause of persistent geopolitical unrest uncertainties The Middle East is a hotbed of terrorism and there are still doubts over the halving of Bitcoin earlier this year. BTC was trading at $66,696 when we went to press, down by 0.7% over the past 24 hour.
Chart from Tradingview.com, image is from Unsplash
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Source: www.newsbtc.com
