Bitcoin Volatility Expected to Rise After the US Presidential Election

While the United States prepares for the results of the 2020 Presidential Election, a number of data points and traders expect some significant cryptocurrency price fluctuations this week. Statistics from skew.com show bitcoin’s 30-day implied volatility has increased to 59% while 3-6 month stats jumped over 62%.

The digital currency economy is hovering at around $388 billion, which is a giant jump from where it was during the last U.S. election in 2016. For instance, during the 2016 presidential race, the price of bitcoin (BTC) was around $709. Since then the crypto-asset BTC has seen a 1,802% return on investment (ROI). Another example is ethereum (ETH), which was trading for $10.83 per unit in 2016, now swaps for $382 in 2020.

For this election, a number of traders and a few points of implied volatility measurements suggest that crypto market participants expect a shake-up this week.

Data from skew.com’s “Bitcoin ATM Implied Volatility” chart indicates that the crypto asset’s options market expects big price fluctuations. Market players trading traditional finance assets envision a similar market shakeup following the U.S. election. At press time skew.com’s chart shows one month implied volatility has spiked and is now hovering around 59% today. Three-month stats have jumped to 62% and 65% for BTC’s implied volatility for the six month period.

On Twitter, the skew.com account tweeted about the implied volatility and said:

It’s election day. Options traders are pricing in a little bit of extra premium for this week with a 3.5% bitcoin implied move for the election. Weekly puts are most active today.

Bitcoin Volatility Expected to Rise After the US Presidential Election

A number of other crypto pundits and digital currency market researchers discussed the post-election crypto market on social media channels and forums. After sharing its week 44 insights report, Arcane Research tweeted out a chart that shows a chart with bitcoin and the S&P 500 during the election week. “Some…

Read More