Bybit and Block Scholes report a quiet crypto market ahead of the US elections, with bullish sentiment despite less short-term volatility.
A new report from Bybit and Block Scholes, shared with crypto.news, highlights a quiet crypto market in the weeks leading up to the US election, with lower short-term volatility but an overall positive outlook.
According to the report, traders are positioning ahead of the election, indicating bullish sentiment, even as short-term options implied volatility has declined.
Implied volatility measures the magnitude of price movements traders expect in the future. Regarding 7-day options, the report noted a sharp decline, suggesting a less expected move in the immediate future.
Volatility after the elections
However, the market has a steep term structure, meaning that the volatility of options expiring later, such as 14-day options, is higher. This reflects traders’ focus on the election and the potential for significant market changes afterward.
Funding rates, which indicate the cost of holding positions in futures contracts, remain positive for all tokens, not just Bitcoin (BTC) and Ethereum (ETH).
Positive funding rates often indicate that more traders are betting on the market to rise. Bitcoin call options, which give traders the right to buy BTC at a fixed price, are dominating open interest, further underscoring the bullish outlook.
The report suggests that while the market is calm at the moment, significant moves could occur after the election, with Bitcoin potentially surpassing the $70,000 mark after November.
