Bitcoin has become a hot topic among traders as options bets suggest the cryptocurrency could hit an all-time high of $80,000 by the end of November, regardless of the outcome of the U.S. presidential election. With rising volatility, the market seems poised for a major price move soon.
Bitcoin’s Rally Linked to Election Outcome?
As the U.S. presidential election nears, traders are increasingly betting on Bitcoin’s future performance, with many predicting it will surpass its previous highs. There has been speculation that a Republican win, particularly by pro-crypto candidate Donald Trump, could boost Bitcoin’s price due to his favorable stance on cryptocurrency.
However, some analysts believe Bitcoin is primed for growth no matter who wins the presidency, thanks to broader macroeconomic factors.
Jeff Mei, Chief Operating Officer at BTSE, noted that both Trump and Democratic candidate Kamala Harris have hinted at pro-crypto policies. While Trump has made clear promises to make the U.S. a crypto leader, Harris has focused more on regulations to protect certain groups.
Despite these differing approaches, traders seem confident that any political shift could positively impact Bitcoin’s price. He further highlighted that factors like the Federal Reserve’s recent rate cuts and a stock market rally could fuel Bitcoin’s rise to $80,000.
Options Traders Bet on Big Moves
Recent data from Derbits suggest that options traders are heavily betting on Bitcoin’s price rise. Implied volatility for options due around the election is increasing, with open interest concentrated at $80,000 for the November 29 expiration.
Additionally, options expiring in December show significant interest in strike prices at $100,000, indicating confidence in a bullish run for Bitcoin.
However, some experts, like Augustine Fan from SOFA, suggest that these bets might be a way to hedge against market risks related to the election, rather than pure optimism for Bitcoin’s price. He noted that traders are taking these positions as a low-cost way to protect against potential big market movements after the election.