Bitcoin traders are bracing for increased volatility as the U.S. election nears on Nov. 5, with estimates for price swings as high as 20%, according to data from DeFi derivatives platform Derive.

“The latest trading analysis reveals some compelling insights into market dynamics as we approach significant financial events,” Derive founder Nick Forster told Decrypt on Monday.

The data shows a high concentration of bets around an $80,000 Bitcoin strike price and a strong presence of short-term call sales, as traders use option premiums to prepare for possible price movements.

Bitcoin briefly broke above $70,000 on Monday, hitting a level last seen in early June, according to CoinGecko. The asset is up more than 5% on the day to $71,200.

“The overwhelming dominance of calls being sold suggests a strategic premium collection by traders, while the focus around the $80,000 strike highlights a potential pivotal point for Bitcoin,” Forster said.

In the last 24 hours, over 47% of options sold were calls, or bets on a

Go to Source to See Full Article
Author: Sebastian Sinclair