The US election is currently causing uncertainty in the market, with Trump’s recent vocal activity and Harris’s increasing winning chances. This has a significant impact on the market, and there is an interest rate meeting scheduled for Friday. The cryptocurrency market is currently on the sidelines, with hedging taking place.
Option IVs are higher than forward options, suggesting a potential big trend in the coming days. There is a lot of risk aversion in the crypto market, with Bitcoin’s short-term IV being at a high level. The option on-value IV has risen to 80%, and there is still uncertainty about who will win the election.
The market generally believes that interest rates will be cut by 25 basis points at the upcoming meeting.
