Originally published on: November 05, 2024
As the United States election unfolds, Bitcoin volatility seems to have hit the pause button, leaving traders speculating on the calm before the storm. Bitfinex analysts are suggesting that this lull in volatility could be a precursor to significant price movements.
According to a recent market report titled “Calm Before the Storm?” by Bitfinex analysts, implied volatility for Bitcoin options is currently trading in the low 40s, indicating a lack of confidence in major price swings. Although Bitcoin’s volatility index spiked to a three-month high on November 3, it has since dipped, hinting at a period of relative stability.
Data from CoinGlass also shows a decline in Bitcoin’s open interest, with traders closing out large positions ahead of the election. Market participants seem hesitant to make big moves before the election results are known, opting for a wait-and-see approach.
Despite the current calm, analysts anticipate a surge in volatility post-election, which could lead to significant market shifts. This volatility could either result in substantial price moves or signal a deeper correction for Bitcoin in the short term.
With Bitcoin dominance at a new cycle high of over 60%, market focus has shifted predominantly to Bitcoin, leaving altcoins in the lurch. Altcoins like Ether and Solana have experienced significant pullbacks, reflecting a shift in investor sentiment towards Bitcoin.
Overall, the crypto market is poised for turbulence post-election, with potential for major price swings and market shifts on the horizon. Stay tuned for updates on how the US election outcome impacts the crypto landscape.
