Bitcoin Options Traders Eye $80,000 No Matter Who Wins US Election
Tuesday, Oct 22, 2024 8:15 pm ET
1min read Bitcoin options traders are gearing up for a potential price surge, with a significant portion focusing on call options with strike prices above $80,000 that expire in November. This bullish sentiment is driven by two major events: the U.S. presidential election on November 5 and the U.S. Federal Open Market Committee (FOMC) interest rate decision on November 8.
The market anticipates a 25 basis point cut to the federal funds rate at the FOMC meeting, with a 90.2% probability. This rate cut could increase risk appetite in the broader market, and traders seem to be positioning themselves accordingly in cryptocurrencies. Bitwise's Head of Research for Europe, André Dragosch, stated, "Currently, the highest number of open contracts for Bitcoin options is for those expiring on November 8, which is the day of the FOMC meeting and a few days after the U.S. election, clearly leaning towards call options."
Market participants are increasingly buying more Bitcoin (BTC) whenever sentiment leans toward Donald Trump's stronger odds of winning the United States presidential election. According to crypto analysts, there has been increasing speculation that there is a correlation between Bitcoin's price action and Donald Trump's election odds. The recent rally to $69,000 may have been driven by speculation about Trump's potential victory.
The upcoming U.S. election and central banks' easing monetary policies have sustained Bitcoin's upward momentum since September. The so-called "Trump trade" has been a significant factor in this surge, with markets betting on a potential Trump victory. Bitcoin investors have been accumulating Bitcoin-related assets, speculating that U.S. cryptocurrency regulations will be more favorable under a Trump administration than they are under Kamala Harris.
In conclusion, Bitcoin options traders are bullish on the cryptocurrency's prospects, with a significant portion focusing on call options with strike prices above $80,000 that expire in November. This bullish sentiment is driven by the U.S. presidential election and the FOMC interest rate decision, as well as the potential impact of the election outcome on U.S. cryptocurrency regulations.
The market anticipates a 25 basis point cut to the federal funds rate at the FOMC meeting, with a 90.2% probability. This rate cut could increase risk appetite in the broader market, and traders seem to be positioning themselves accordingly in cryptocurrencies. Bitwise's Head of Research for Europe, André Dragosch, stated, "Currently, the highest number of open contracts for Bitcoin options is for those expiring on November 8, which is the day of the FOMC meeting and a few days after the U.S. election, clearly leaning towards call options."
Market participants are increasingly buying more Bitcoin (BTC) whenever sentiment leans toward Donald Trump's stronger odds of winning the United States presidential election. According to crypto analysts, there has been increasing speculation that there is a correlation between Bitcoin's price action and Donald Trump's election odds. The recent rally to $69,000 may have been driven by speculation about Trump's potential victory.
The upcoming U.S. election and central banks' easing monetary policies have sustained Bitcoin's upward momentum since September. The so-called "Trump trade" has been a significant factor in this surge, with markets betting on a potential Trump victory. Bitcoin investors have been accumulating Bitcoin-related assets, speculating that U.S. cryptocurrency regulations will be more favorable under a Trump administration than they are under Kamala Harris.
In conclusion, Bitcoin options traders are bullish on the cryptocurrency's prospects, with a significant portion focusing on call options with strike prices above $80,000 that expire in November. This bullish sentiment is driven by the U.S. presidential election and the FOMC interest rate decision, as well as the potential impact of the election outcome on U.S. cryptocurrency regulations.
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