Crypto investors are eagerly waiting for the outcome of the US election to gain clarity on market volatility. According to the latest “Bitfinex Alpha” report, the crypto market is experiencing low volatility as investors take a cautious approach leading up to the election.
Bitcoin’s implied volatility in the options market is currently around 40%, indicating a lack of confidence in major price shifts. However, the report predicts a potential surge in volatility between November 5 and November 8, which could result in sharp price movements during election week. This uncertainty may lead to reactive trading rather than a clear market direction.
The report also mentions that recent corrections in Bitcoin and altcoin prices reflect underlying concerns in the market. Additionally, the approval of options on spot Bitcoin exchange-traded funds (ETFs) could further complicate the market and potentially trigger future movements.
Bitcoin’s dominance has reached a cycle high of 60.62%, with investors showing a preference for established assets over altcoins. The altcoin market has seen a significant decline since March, with tokens outside the top 10 losing 45% of their value. Altcoin funding rates are stabilizing, and speculative interest remains low, indicating that altcoins may continue to underperform Bitcoin in the near future.
Bitfinex analysts suggest that without a major catalyst, the broader crypto market may not see significant growth. Bitcoin is likely to outperform altcoins, especially in the absence of positive drivers for smaller tokens.
In conclusion, the US election outcome is crucial for providing clarity on crypto market volatility. Investors are advised to remain cautious and monitor market developments closely to navigate the potential surge in volatility post-election.