As the U.S. presidential election approaches, Bitcoin (BTC) continues its climb toward record levels. The flagship cryptocurrency surged above $74,000 in its latest rally, surpassing the all-time high it set in March. So, how long will this rise continue? Here are the details…
Bitcoin May Soon Reach the $80,000 Mark!
According to Bitfinex’s latest report, geopolitical uncertainties and the volatility stirred by the U.S. election are supporting Bitcoin’s upward trend. The increase in speculative positions, particularly referred to as the ‘Trump trade,’ is amplifying the cryptocurrency’s volatility. Market experts believe that a Republican win could further fuel Bitcoin’s growth.
Grayscale Investments’ research head, Zach Pandl, told CNBC, “Conditions are quite favorable for Bitcoin and cryptocurrencies. Expectations of a Fed rate cut and projections that regulations will be relaxed post-election, regardless of the winner, are supporting the market.”
The election frenzy is also evident in options markets. Analysts suggest that volatility could peak on election day, November 5, with implied volatility reaching 100%. The increase in call options for the $80,000 level expiring on December 27 indicates that investors expect new records towards the end of the year.
Arisa Toyosaki, a co-founder of Cega, emphasizes that not only political factors but also general risk factors are impacting Bitcoin’s rise. Notably, new records were also set in the U.S. stock markets this month.
In summary, Bitcoin’s trajectory in the coming period will be closely tied to the results of the U.S. Presidential Election. Don’t forget to share your thoughts with us in the comments.
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