In the ever-volatile world of cryptocurrencies, Bitcoin (BTC) has recently experienced a veritable rollercoaster ride. The digital currency, after a tumultuous few days, rebounded above the significant $69K mark earlier today, only to swing back to $68K in subsequent trading.
As of the present moment, after a 1.86% jump over the past week, Bitcoin stands at a value of $68,991.46. The 24-hour market volume for BTC has seen a remarkable surge of 77.24%, standing at $34.83B.
The unprecedented volatility in Bitcoin prices can be largely attributed to the hard-fought U.S. presidential race in key swing states. In a stark reflection of this situation, the Bitcoin volatility index has surged to its highest since late July.
According to reports by TradingView, Deribit, a leading crypto options exchange, has seen its Bitcoin implied volatility index (DVOL) rise to an annualized 63.24%, a figure not seen since late July.
In an even more startling development, Bitcoin’s seven-day implied volatility has spiked to an annualized 74.4%. This figure is significantly higher than the 7-day realized or historical volatility of 41.4%. This implied volatility is closely tracking the Federal Reserve meeting due Thursday and the impending election results expected on Friday.
Earlier this week, Bitcoin nearly reached its all-time high, soaring to $73,500 on Tuesday. This spike coincided with Polymarket’s prediction showing a surge in then-President Donald Trump’s winning odds, which stood at 66%. This correlation, however, was short-lived, as both Trump’s odds and BTC’s price recoiled. The former’s winning odds dropped to 55%, while Bitcoin fell below the $68,000 mark earlier today. Trump’s winning probability on Polymarket decreased from 66% to 62% on October 31, before dropping further to 53% on November 3.
The close connection between Bitcoin’s value and political uncertainty in the United States is a clear testament to the cryptocurrency’s status as a global financial gauge. With the Federal Reserve meeting and the final election results looming, Bitcoin’s rollercoaster ride is far from over. Investors and traders, both seasoned and amateur, are undoubtedly keeping a close eye on both the political and financial landscape, ready to adapt their strategies to the ever-evolving situation.
