Bitcoin speculators are ready to face the possibility of large fluctuations after the end of the US election day on Tuesday.
The 30-day implied volatility index of this largest digital asset has reached its highest level since the global market crash in August. CF Benchmarks Ltd. compiles this index based on the CME Bitcoin options prices.
Caroline Mauron, co-founder of Orbit Markets, a liquidity provider for cryptocurrency derivatives trading, stated that the options market is signaling a post-election day volatility of about 8%, while typical daily fluctuations are usually around 2%.
Mauron added that the lack of significant volatility premium after November 7 indicates that investors expect things to settle down quickly. "Considering the polls show a close race, the reality may not be as optimistic."
The "showdown" between Republican candidate Donald Trump and his Democratic opponent and current Vice President Kamala Harris is imminent. Trump openly supports cryptocurrencies in his campaign, while Harris is more cautious, pledging to support a regulatory framework for digital assets.