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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Mickael Mosse BlogThe 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.