Bitcoin Market Volatility Ahead of U.S. Elections

Traders are anticipating increased volatility in the bitcoin market on election night, with a potential price swing of 3.5%. QCP Capital analysts noted that the crypto market is currently factoring in this fluctuation, yet traders seem to ignore downside risks following the election results, especially if they are delayed or contested.

Bullish Sentiment in the Options Market

In the options market, bullish sentiment is strong, with many call options set to expire featuring strike prices above $70,000. Deribit CEO Luuk Strijers observed about $3 billion in options open interest expiring on November 8, indicating a strong bullish sentiment for bitcoin.

SkyBridge Capital CEO Anthony Scaramucci expressed an optimistic outlook on bitcoin's performance post-election, suggesting it could rise regardless of the winning candidate. He speculated that a Trump victory may lead to a short-term boost, while a Harris win could keep the market stable given her pro-cryptocurrency stance.

However, QCP analysts warned that low volatility premiums imply markets may be underestimating potential risks of volatility post-election.

Bitcoin Dominance Increases

Ahead of the presidential election, bitcoin dominance has exceeded 60%, marking a new cycle high as interest in altcoins declines. Leading altcoins like Ethereum and Solana have seen significant price drops recently, making it difficult for them to compete with bitcoin’s growing market share.

Sygnum Bank’s report for Q4 2024 highlights bitcoin's status as a safe-haven asset, as it continues to attract capital while altcoins stagnate. Currently, bitcoin is trading above $68,700, maintaining a flat position over the last 24 hours.