Bitcoin volatility, which reached its highest level in the last three months, remains stable with investors waiting for the results of the US elections.
Bitcoin volatility is known as a measure of expected price volatility, and according to Bitfinex analysts, this could be the “calm before the storm.” In their market report titled “The Calm Before the Storm” dated November 5, Bitfinex analysts stated that implied volatility for Bitcoin options is trading at the following low levels, expressing a lack of confidence in the market. According to CoinGlass data, Bitcoin’s open interest rate also dropped significantly as futures positions were closed.
Cautious wait for Bitcoin (BTC) volatility
Bitfinex analysts noted that despite expectations of increased volatility ahead of the US elections on November 5, many investors are hesitant.
However, the report stated that a major increase in volatility is still expected immediately following the elections, which could either trigger major rallies or, in the case of Bitcoin, signal a deep correction.
This report coincides with the expectations of other market experts that post-election volatility will increase. One trader predicted that the Bitcoin price could move “at least” 10% in either direction after the election results are announced.
Stagnant progress in the altcoin market
Bitcoin’s market dominance exceeded 60 percent on October 29, putting pressure on altcoins. Bitfinex analysts stated that the market is focusing only on Bitcoin as the elections approach, and that interest in the altcoin market has decreased.
“When BTC pulls back, altcoins experience major declines,” the report said. Popular altcoins like Ethereum (ETH) and Solana (SOL) are down nearly 12 percent from their recent peaks, while the Ethereum ETF is down 40 percent since its rally.
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