Bitcoin investors are showing signs of caution as the US elections draw near, with open interest in Bitcoin dropping by $2 billion in recent days. This decline, as reported by Coinglass, indicates that some investors are choosing to close their positions before the election to mitigate risk.
The market sentiment has been dampened by a combination of profit-taking, a scarcity of positive news, and overall risk aversion. As a result, Bitcoin’s price has dipped below $70,000, currently trading at around $67,731. However, Singapore-based trading firm QCP sees this as a temporary lull before a potential breakout that could drive Bitcoin to new highs.
Activity in the options market further supports the idea of a price increase post-election, with a notable interest in “topside” positions and an uptick in purchases of $75,000 call options expiring in November. QCP predicts that Bitcoin’s price will likely remain within its current range until there is more clarity post-election. They also suggest that a victory for Donald Trump could lead to an immediate price surge, while a win for Kamala Harris might have the opposite effect.
Overall, the decline in Bitcoin open interest reflects the cautious stance taken by investors in anticipation of the US elections. Despite the current market conditions, there is optimism for a potential price increase in the near future, especially if certain political outcomes come to pass. Investors will be closely watching the developments in the coming days to determine their next moves in the volatile cryptocurrency market.