The Calm Before The Storm? Analysts' Forecasts For The Crypto Market Before The American Elections

As the American elections approach, the mutual influence between crypto and politics is palpable. As the election nears, experts speculate on its potential impacts for Bitcoin and other altcoins. Yet, the agitation remains discreet for now, with markets showing an unusual calm. A report by Bybit and Block Scholes indicates a decrease in short-term volatility, but bullish sentiment persists nonetheless.

A crypto market waiting for a turning point 

The last weeks before the American election are marked by a strange calm in the crypto market. According to the report by Bybit and Block Scholes, options on bitcoin show reduced implied volatility for seven-day expirations, indicating low expectations for short-term movement. However, this does not mean that traders are sitting idly:

• The options structure shows a marked increase beyond 14 days, suggesting a rise in uncertainty.
• The funding rates, indicators of the cost of holding futures contracts, remain positive.
• Call options on BTC continue to dominate open interest.

The current calm might just be a prelude to a post-electoral rally, as some crypto analysts have predicted.

Bitcoin and Ethereum in the spotlight 

Despite the apparent tranquility, investors keep a close eye on the giants of the sector. With the elections in sight, options on Bitcoin and Ethereum reveal a latent optimism. Positive funding rates suggest that speculators are still betting on rising prices.

However, “it is unwise to underestimate the power of electoral uncertainty,” points out an expert.

This situation could lead to prices rising beyond $70,000 for BTC, and possibly significant movements for the ETH price.

Thus, while the calm is indeed present, it seems to precede a storm that the markets are already preparing to face.

Also noting that after a historic September, Bitcoin faces a significant challenge with the American elections in sight.