Bitcoin volatility is expected to increase after the US presidential election

As the United States prepares for the 2020 presidential election results, a number of data points and traders expect some significant price swings in cryptocurrencies this week. Statistics from skew.com show that Bitcoin’s 30-day implied volatility has increased to 59% while its 3-6 month stats have increased over 62%.

The economy in digital currencies is around $ 388 billion. This is a huge leap from the last US election in 2016. For example, during the 2016 presidential contest, the price of Bitcoin (BTC) was around $ 709. Since then, the crypto asset BTC has achieved a return on investment (ROI) of 1,802%. Another example is Ethereum (ETH), which traded for $ 10.83 per share in 2016 and will be traded for $ 382 in 2020.

For this choice, a number of traders and some points of implied volatility measurements suggest that crypto market participants are expecting a switch this week.

Data from skew.com “Bitcoin ATMs implied volatilityThe chart shows that the crypto-asset options market is expecting large price fluctuations. Market participants trading traditional financial assets are seeing a similar shakeout after the US election. At the time of going to press, the graph from skew.com shows that implied volatility has increased by a month and is now 59%. The three month stats have increased to 62% and 65% for the six month period due to the implied volatility of BTC.

It’s on Twitter skew.com Account tweeted about the implied volatility and

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 pic.twitter.com/aUG1XuDhsG

— skew (@skewdotcom) November 3, 2020

It’s election day. Options traders are calculating a little extra premium for this week, with a Bitcoin step of 3.5% implied for the choice. Weekly puts are the most active today.

A number of other crypto experts and market researchers for digital currencies discussed the crypto market after the elections on social media channels and forums. After sharing his 44th week Insights reportArcane Research tweeted a chart showing a chart with Bitcoin and the S&P 500 during election week. “Some interesting moves from Bitcoin and S&P 500 on Election Day 2016. What will happen this time?” Arkan

Some interesting movements from both bitcoin and S&P 500 during election day in 2016. What will happen this time? pic.twitter.com/2xber1Hnay

— K33 Research (@K33Research) November 3, 2020

“Breathe easy today and you know that silver and gold are just as shiny and Bitcoin as safe as ever, not dullr the result of this election, ”said the crypto proponent“ Cryptoredacted ”. https://twitter.com/CryptoRedacted/status/1323628441497964544.

On election day Messari.io Ty Young also discussed the economic impact of the US elections and Bitcoin. “In most polls, Biden has a 60% chance of winning the presidential election and an even higher potential for a blue wave in the Senate,” wrote Young on Tuesday. “These results could mean bigger stimulus packages, more QE and clearer guidance for investors entering a new administration.”

Young continues:

One thing is likely: volatility is coming. On the bullish side of Bitcoin, central banks will continue to flood the world with monetary and economic stimulus packages, creating the conditions for BTC. On the bearish side, a controversial election and second wave of Covid-19 bans could spell disaster for the markets and bring BTC with it.

In addition, the weekly market report from the research and trading platform Luno also discussed Tuesday’s elections.

“Election day was bumpy four years ago and there is little reason to believe that we will go through this election without much movement,” he said Luno analysts. “After close of election day, the S&P 500 futures fell significantly before all losses were eliminated when Trump was announced as the winner. The market reacted positively to the Republican winner and ended the week up 5%. “

Many other bitcoiners believe that regardless of who wins the US election, the incentives and currency corruption will continue. Alex MashinskyCelsius Network CEO believes that in the face of mounting unrest and economic uncertainty, central banks will seek to pump liquidity into the weak economy.

“The US elections increase uncertainty and the need for companies to need more reserves and more liquidity,” said Mashinsky. “The global economy is in slow motion recession as the demand for goods and services slows. In the meantime, central banks are pumping liquidity to reverse this trend. All of this is not good for GDP or our employment rates. No matter who wins, we will have a severe recession in the next 2-3 years. ”

Do you expect cryptocurrencies to become volatile after the US elections? Let us know in the comments below.

Photo credit: Shutterstock, Pixabay, Wiki Commons, skew.com,

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