According to Arbelos Markets CEO Joshua Lim, Bitcoin Options traders are preparing for a potential price increase following the US presidential election on November 5.
Lim noted that there was a noticeable increase in traders buying call options that expired after the election, especially in the $70,000 to $80,000 strike price range.
“It has been a combination of systematic end-of-month selling by yield seekers and a ‘sharpening’ trend to buy post-election call options that have become cheaper by selling pre-election options,” Lim said. This strategy shows that traders are expecting an upward price breakout for Bitcoin despite the current uncertainties in global markets. Lim continued: “I see an increase in call purchases in the $70,000-80,000 range and call sales at $100,000 and above due to the implied volatility expectation after the election is concluded.”
According to Lim, Bitcoin has begun to be seen as both an inflation hedge and a potential proxy for the US presidential election, especially in the event of former President Donald Trump’s victory. “The options market is pricing in a 7% move on US election day, which is a bit low compared to BTC’s beta to risk assets,” Lim said.
In blockchain-based prediction markets, Trump’s chances of winning have increased significantly. Trump’s chance of victory is currently 60.3% at Polymarket, while Vice President Kamala Harris’s is 39.6%.
Lim also pointed to the falling put-call volume ratio in BTC options, stating that there has been a clear increase in activity focused on call options.
*This is not investment advice.
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Source: https://www.bitcoinsistemi.com/bitcoin-fiyatinda-abd-secimi-ruzgari-esebilir-iste-analistin-bekledigi-hareket/
