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As the US presidential election approaches, the crypto community is abuzz with speculation about how the outcome will affect the value of Bitcoin.
With 15 days to go until the election between former President Donald Trump and Vice President Kamala Harris, options traders they are increasingly optimistic about a new high for Bitcoin, regardless of who wins the presidency.
Traders Like Call Options Ahead of US Election
According to the latter report from Bloomberg, options traders are placing significant bets that Bitcoin will reach a record high of 80,000 dollars by the end of November.
Notably, the implied volatility of Bitcoin options, especially those expiring on election day, remains high. Many traders like call options, which give the buyer the right to buy BTC at new highs.
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David Lawant, head of research at major crypto broker FalconX, commented, “I believe the market consensus is that Bitcoin is likely to do well regardless of the election outcome.” His analysis points to that you can choose a job surrounding the upcoming election shows a different bias towards power.
The political landscape has conflicting views on the emerging cryptocurrency landscape. Trump, who has been a spokesperson for digital assets in recent months, is considered by many to be a representative of crypto-crypto, leading to the prominence of Bitcoin as a “Trump trade.”
On the other hand, Harris has pledged to support a regulatory framework for cryptocurrencies, which is a change from the stricter approach seen during the Biden administration, which is characterized by ongoing enforcement actions and lawsuits against key players in the sector.
According to the report, in addition to political factors, traders also consider non-political influences as strengths cut rate by the Federal Reserve (Fed) and continued inflationary concerns, contributing to a general sense of optimism.
Data Reveals Strong Demand for $80,000 Bitcoin Calls
Data from Deribit, a crypto options exchange, reveals a declining put-to-call ratio, indicating that more traders are buying. call options as the year draws to a close.
Yev Feldman, founder of SwapGlobal, elaborated on the current trading patterns observed for investors, saying: “We are seeing traders buying calls near $68,000 and puts around $66,000, suggesting that many are in a position to find support on both sides.”
Feldman also added that there is limited reason to expect a dip after the election, making the upward movement seem palpable in the market’s leading crypto.
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Open data of interest and shows that the call contracts expiring on November 29 are concentrated around the 80,000 mark, while the second most popular strike price is $70,000.
For contracts expiring on December 27, interest is compounded at around $100,000 and $80,000, while the most sought-after strike price for calls expiring on November 8 is $75,000.
Interestingly, call options command higher premiums than their put counterparts, according to the skew term structure, which shows the price dynamics between these options.
“This shows that investors are using the options market more as a potential capture tool than as a low-risk hedge,” Lawant explained.
The researcher also pointed out that opinions about non-Bitcoin crypto currency have remained separate, there has been little agreement on how these assets would perform under different electoral conditions.
At the time of writing, BTC was trading at $67,370.
Featured image from DALL-E, chart from TradingView.com
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