Bitcoin Traders Wary of Price Drop in U.S. Election Week, CME Options Show
Bitcoin traders are hedging against potential price declines due to anticipated volatility from the upcoming U.S. elections. CME's bitcoin options market indicates that put options, which protect against price drops, are more expensive than call options, reflecting a bearish sentiment. The 25-delta risk reversal for contracts expiring Friday shows a -1.3% bias towards puts. Bitcoin's price has decreased to $68,000 from highs of $73,500, influenced by declining election prospects for Donald Trump. Longer-duration options favor calls, suggesting a positive outlook with expectations for a year-end rally to $80,000. Polls indicate a close race between Kamala Harris and Trump, with potential BTC price swings of $6,000-$8,000 expected post-election. Deribit options trading shows a neutral bias for this week but a bullish sentiment for expirations beyond November 15.
