While the US prepares for the results of the 2020 Presidential Election, some data points and traders expect some significant cryptocurrency price fluctuations this week. Stats from seekw.com show bitcoin’s 30-day implied volatility has increased by 59% while stats over 3-6 months are up by more than 62%.
The digital currency economy is hovering at around $ 388 billion which is a huge leap from its level in the last US election in 2016. For example, in the presidential race in 2016, the price of bitcoin (BTC) was around $ 709. Since then, the BTC crypto asset has seen a return on investment (ROI) of 1.802%. Another example is ethereum (ETH), which was traded for $ 10.83 per unit in 2016, now swapped for $ 382 in 2020.
For this election, some traders and some volatility metrics imply that crypto market participants expect a shakeup this week.
Data from “Bitcoin ATM implied volatility“The chart indicates that the option market of the crypto asset is expected to experience large price movements. Players in traditional financial asset trading envision a similar market shake after the US election. At the time of writing, skew.com’s chart shows that one month’s implied volatility has spiked and is currently hovering around 59% today. Stats for the three months have risen to 62% and 65% for BTC’s implied volatility over a six-month period.
On Twitter, oblique.com the account tweeted about the implied volatility and to speak:
It is election day. Options traders are pricing a bit more in premiums for this week with a move that implies 3.5% bitcoin for the election. Weekly order is most active today.
Several other crypto experts and digital currency market researchers have discussed the post-election cryptocurrency market on social media channels and forums. After sharing 44th week Report detailed information, Arcane Research tweeted out a chart showing the chart with bitcoin and the S&P 500 during election week. “Some interesting moves from both bitcoin and the S&P 500 on election day 2016. What will happen this time?” Arcane tweeted on November 3.
“It’s easy to breathe these days to know that silver and gold will shine bit by bit and bitcoin is safer than ever, not dull.r the result of this election, ”wrote the proponent of ‘Cryptoredacted’ cryptocurrency.
On election day, Ty Young of Messari.io also discussed the economic ramifications of the US election and bitcoin. “The bulk of the polls show that Biden holds a 60% chance of winning the presidential election and has an even higher chance of a blue wave sweeping the senate,” Young wrote on Tuesday. “Those results could mean larger stimulus, more QE and clearer guidance for investors when entering a new administration.”
The child continued:
One thing might happen: volatility is coming. On the upside for Bitcoin, central banks will continue to flood the world with money and stimulus packages, setting the stage for BTC. On the downside, a controversial election and a second wave of Covid-19 lockdown could be catastrophic for the market, with BTC in it.
Furthermore, the Luno trading and research platform’s weekly market report also discussed Tuesday’s election.
“Election day four years ago was very bumpy, and there is little reason to believe that we will get through this election without any big moves,” explains Luno analysts. “After closing on election day, the S&P 500 futures index dropped significantly before erasing any losses when Trump was declared the winner. The market responded positively to the Republican winner and ended the week with a 5% increase.
Many other bitcoin miners believe that regardless of who wins the US election, the stimulus and currency corruption will continue. Alex Mashinsky, CEO of Celsius Network believes that as civil unrest and economic instability increase, central banks will try to pump liquidity into a recession economy.
“The elections in the US are increasing uncertainty and companies need more reserves and liquidity,” Mashinsky explained. “The global economy is experiencing a slow-moving recession, as demand for goods and services is slowing. Meanwhile, central banks pump liquidity to try to reverse this trend. All of these aren’t good for our GDP or employment rates. Whoever wins – we’re going to have a serious recession in the next 2-3 years. “
Do you expect the cryptocurrency to fluctuate after the US election? Let us know in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons, seekw.com,
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