Crypto traders are betting on Bitcoin (BTC) to reach the $80,000 mark in November as the US votes to choose between Donald Trump and Kamala Harris. This is happening as BTC continues to trade near the $70,000 level amidst speculations that Trump will win the US election.
Analysts have already attributed this Trump campaign-linked surge in the world’s largest cryptocurrency akin to people investing in gold as a safe haven.
On Monday, October 21, Bitcoin went quite close to the $70,000 mark as it traded at $69000 because of the Trump US election win forecast. However, the crypto market has now gone averse to the US presidential election result as most experts have said in their BTC analysis that the token will touch the $80,000 level no matter who wins.
The cryptocurrency’s option’s volatility has risen because of the US elections with wagers skewed towards call options which provide crypto traders insights on whether to buy BTC at its new highs.
The crypto options exchange Deribit has revealed that Bitcoin’s put-to-call market is skewed towards call options rather than puts. While $70,000 is the second most popular bet amongst crypto traders, the pen interest for call contracts expiring on November 29 is hovering around $80,000. For calls expiring on December 27, the prediction is $100,000 followed by $80,000. The most popular bet is on calls expiring on November 8, (3 days after the US election) which is at $75000.
Analyst David Lawant from crypto brokerage FalconX said that BTC is “likely to perform well regardless of the election outcome.” “Our analysis shows that options activity surrounding the upcoming elections exhibits a notable topside-heavy bias,” Lawant added.
Meanwhile, crypto options trading firm SwapGlonal founder Yev Feldman said that there is limited reason for Bitcoin spiralling downwards after the US election Feldman explained how crypto traders buy calls at $68000 and puts at $66000, continuously positioning and repositioning for breakouts at both the ends.
“This indicates that investors are leveraging the options market more as a tool for capturing potential upside rather than as a hedge against downside risks. For non-Bitcoin crypto assets, I see opinions more divided. The market shows less consensus on how these alternative cryptocurrencies might perform under different electoral scenarios," Lawant added.
Overall, the Bitcoin rallying is a signal that the crypto market has become responsive to the possible change in US policies and administration, prompting investors to think that either Trump or Harris - any change is good. As the Fed rate cuts are coinciding with the administration BTC is slated to cross its all-time high level to reach the $80,000 mark.
As of October 24, 1.08 am UTC, BTC is trading at $66,368.82, down by 1.61% in the last 24 hours. The digital asset’s trading volume and market capitalization both have gone down in the last 24 hours touching $31.32 billion and $1.31 trillion respectively.