Bitcoin Volatility Expected to Rise After the US Presidential Election

[Serious475]

While the United States prepares for the results of the 2020 Presidential Election, a number of data points and traders expect some significant cryptocurrency price fluctuations this week. Statistics from skew.com show bitcoin’s 30-day implied volatility has increased to 59% while 3-6 month stats jumped over 62%.

The digital currency economy is hovering at around $388 billion, which is a giant jump from where it was during the last U.S. election in 2016. For instance, during the 2016 presidential race, the price of bitcoin (BTC) was around $709. Since then the crypto-asset BTC has seen a 1,802% return on investment (ROI). Another example is ethereum (ETH), which was trading for $10.83 per unit in 2016, now swaps for $382 in 2020.

For this election, a number of traders and a few points of implied volatility measurements suggest that crypto market participants expect a shake-up this week.

Data from skew.com’s “Bitcoin ATM Implied Volatility” chart indicates that the crypto asset’s options market expects big price fluctuations. Market players trading traditional finance assets envision a similar market shakeup following the U.S. election. At press time skew.com’s chart shows one month implied volatility has spiked and is now hovering around 59% today. Three-month stats have jumped to 62% and 65% for BTC’s implied volatility for the six month period.

Do you expect cryptocurrencies to be volatile following the U.S. election?
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Source : Mickael Mosse Blog

The volatility of bitcoin is really rising up because the movements are getting bigger and bigger and the proof of this is the great price rise of bitcoin from $10,000 upto $14,000 which is its price right now. Since the price goes up so high, there is also a chance that its price will go lower it means that the volatility of bitcoin is really rising since the movement is unpredictable. We need to take risk of losing a money if we want to earn a big one.

[skarais]

Bitcoin's price volatility will continue and it should be. Volatility allow trader to make profit even if some of them lose. The US election is a big political party in which there is enough speculation to allow people to spread the word that it will cause a market reaction. I think that doesn't just happen to the crypto market, it happen to the stock market too. But what we have to realize is that even if there is no US election, the volatility of bitcoin price will remain.

[stompix]

There is nothing to do with the us election and bla bla bla but yes even you guys who denying it has no real proof isnt it?
I mean it could be the biden to win us election has drag some excitement to the investor that the crypto strict rules in us could be changed as the new policy may be applied under biden government.

And do you have proof of this? It's funny how you ask for proof but you yourself have none to quote for.
Besides there is a huge difference, you're asking for proof of two things not being related which is a damn hard thing to come up with since one is a 4 year only event and it's not even the same election with the same candidates every time with the same former presider from the same party but yours is pretty easy to check, you simply have to come up with the so-called Biden's plan to relax those strict crypto rules. But there is none, no matter how hard the press tried to find out he has said nothing about bitcoin other than that he doesn't own any. Hardly a prelude to that scenario.

I mean there is no harm to have that opinion right?

Then why are you angry with the others and demanding proof when everyone has the right to express an opinion?