Analysis: In October, Bitcoin Put and Call Options Are Evenly Distributed, as Investors 'Hedge Their Bets' for the U.S. Election

BlockBeats News, November 4th, according to Bloomberg, Bitcoin speculators are preparing to deal with potential market volatility after the U.S. election day. Since the global market crash in August, Bitcoin's 30-day implied volatility index has reached its highest level. The index, compiled by CF Benchmarks Ltd., is derived from CME Bitcoin options pricing.

Cryptocurrency derivatives trading liquidity provider Orbit Markets co-founder Caroline Mauron stated that the options market is indicating an expected post-election day volatility of about 8%, while typical volatility is usually around 2%. She added: "After November 7th, there is no significant volatility premium in the market, indicating that the market expects a quick election outcome. Given the tight race as indicated by the polls, this may be an optimistic prediction."

According to a report from the cryptocurrency derivatives trading platform Derive.xyz, throughout October, both Bitcoin's put and call options were evenly distributed, indicating that speculators were preparing for both upward and downward trends ahead of the U.S. election.

Additionally, according to Deribit data, in the weeks following the election, based on the peak open interest positions of put and call options, the Bitcoin trading range could be between $60,000 and $80,000.