Here We Discuss What Is Happening After The US Presidential Election As Bitcoin Volatility Is Expected To Rise 

As America Goes To The Polling Booths

A number of data points and traders expect some significant cryptocurrency price fluctuations this week while the United States prepares for the results of the 2020 Presidential Election. In this context, we find that Bitcoin’s 30-day implied volatility has thereby increased to 59% while the 3-6-month stats have jumped over 62% according to statistics from skew.com.

This is a giant jump from where it was during the last US election in 2016, the digital currency economy is hovering at around $388 billion. During the 2016 presidential race, the price of bitcoin was around $709 for instance. The crypto-asset BTC has since then seen a 1,802% return on investment. Which was trading for $10.83 per unit in 2016 now swaps for $382 in 2020 as another example is Ethereum. 

A number of traders and a few points of implied volatility measurements suggest that crypto market participants expect a shake-up this week for this election. 

Data Experts Are Of This Opinion 

Indicating that the crypto asset’s options market expects big price fluctuations as data from skew.com’s Bitcoin ATM Implied Volatility chart. Envisioning a similar market shakeup following the US election are market players trading traditional financial assets. Skew.com’s chart shows one-month implied volatility has spiked and is now hovering around 59% today at press time. For BTC’s implied volatility for the six months was that three-month stats have jumped to 62% and 65%. 

The skew.com account tweeted about the implied volatility on Twitter saying: 

As it’s election day, with a 3.5% bitcoin implied move for the election, options traders are pricing in a little bit of extra premium for this week. Most active today are weekly puts. 

On social media channels and forums, a number of other crypto pundits and digital currency market researchers discussed the post-election crypto market. Showing a chart with bitcoin and the S&P 500 during the election week, Arcane Research tweeted out a chart. On November 3, Arcane tweeted, during election day in 2016, here are some interesting movements from both bitcoin and S&P 500. This time what will happen?  

The Effect Of Elections On Bitcoin Price Fluctuations

The crypto proponent Cryptoredacted wrote, no matter the outcome of this election, breathe easy today knowing silver and gold will be every bit as shiny and bitcoin as secure as ever. 

Discussing the economic ramifications of the US election and bitcoin, on election day, was Messari.io’s, Ty Young. 

On Tuesday Young wrote even higher potential for a blue wave sweep through the senate as the majority of polls have Biden holding a 60% chance of winning the presidential election. Going into a new administration, those outcomes could mean larger stimulus packages, more QE, and clearer guidance for investors. 

Continuing on it Young says 

Volatility is coming which is one thing probable. Further setting the stage for BTC, on the bullish side for bitcoin, central banks will continue to flood the world with money and stimulus packages. Dragging down BTC with it, on the bearish side, a contested election and the second wave of Covid-19 lockdowns could spell disaster for markets. 

Weekly Market Report From Analysts At Luno

Discussing the election on Tuesday as well as the research and trading platform Luno’s weekly market report. 

Luno analysts explained, there is little reason to believe that they will go through this election without large movements as election day was bumpy four years ago. Before erasing all losses when Trump was announced as the winner, after closing hours on election day, the S&P 500 futures dropped substantially. Ending the week up 5%, the market reacted positively to the Republican winner. 

Stimulus and monetary corruption will continue as many other bitcoiners believe that no matter who wins the US election. Believing that as civil unrest and economic uncertainty heighten, central banks will try to pump liquidity into the faltering economy according to Alex Mashinsky the CEO of Celsius Network. 

The Final Concluding Words On The Discussion 

As Mashinsky explains, the need companies have to have more reserves and more liquidity was the US election as increasing the uncertainty. As the demand for goods and services is slowing down, the global economy along with bitcoin is going through a slow-motion recession. To try and reverse this trend meanwhile the central banks pump liquidity. For GDP or our employment rates, all of this is not good. They say they have a severe recession in the next 2-3 years no matter who wins. 

So now we keep our fingers crossed to see who runs the big brother for the next four years with the news of the recession around the corner.