Bitcoin has had a very volatile period, with its value jumping to above $69K before falling back to $68K. Right now, Bitcoin is at $68,991.46, an increase of 1.86% over the past week. The market volume for Bitcoin is $34.83B, which is a 77.24% increase. One of the main reasons for the change in Bitcoin prices is the close race in the U.S.
presidential election, especially in important swing states. This has made the Bitcoin volatility index jump to its highest level since late July. Deribit, a leading cryptocurrency options exchange, reported that its Bitcoin implied volatility index rose to an annualized 63.24%, which is the highest since late July.
Bitcoin’s seven-day implied volatility has increased to an annualized 74.4%, which is more than the 7-day realized or historical volatility of 41.4%. The implied volatility is linked to the upcoming Fed meeting on Thursday and the election results on Friday. Early in the week, Bitcoin almost reached its all-time high and went up to $73,500 on Tuesday, according to Polymarket, which showed that Donald Trump’s chances of winning were at 66%.
However, since then, Trump’s chances and Bitcoin’s price have gone down, with Trump’s chances of winning at 55% and Bitcoin’s price below $68,000. Trump’s chances of winning went from 66% on 31st October to 62% on November 1st and then dropped to 53% on November 3rd, according to Polymarket’s predictions.
