The U.S. presidential election is approaching, and cryptocurrency investors are being cautious due to the uncertainty surrounding the outcome. As a result, there is low volatility in the bitcoin options market. Crypto exchange Bitfinex reports that investors are adopting a wait-and-see approach, with a lack of confidence in the current price movements of BTC.
Analysts had expected heightened volatility leading up to the election, but investors seem hesitant to take action in the market. The front end of the options market is experiencing significant pressure, and implied volatility for bitcoin options is in the low 40s. Bitfinex suggests that the current low front-end volatility could signal concern for Bitcoin and altcoins, and any shifts in sentiment surrounding options approval for Bitcoin spot ETFs could influence volatility and trading activity.
Bitfinex analysts expect the fluctuation structure to change between November 5 and 8, fueled by expectations of significant price action within the week. However, if the market fails to experience the expected volatility, a more substantial issue could be at play, and BTC may witness a deeper correction.
