Bitcoin Bets Surge: Traders Eye $80,000 High by November Despite US Election Uncertainty

Traders have grown optimistic about Bitcoin, the world’s largest cryptocurrency, with many betting on its potential to reach a record high of $80,000 in November 2024, regardless of the outcome of the upcoming U.S. elections, according to a Bloomberg report. As of October 21, Bitcoin approached the $70,000 mark amid polling that indicated Republican nominee Donald Trump was in a tight race against Democratic nominee Kamala Harris. Recently, market sentiment has shifted, leading to increased wagers that Bitcoin could achieve its annual high of $80,000 in November.

Trump has publicly supported cryptocurrencies, while Harris has called for industry regulation but has moved away from the stricter approach taken by current President Joe Biden. Traders interpret this shift as a positive development for the crypto market. Additionally, anticipated rate cuts by the U.S. Federal Reserve (Fed) have further bolstered trader sentiment. Bloomberg notes that Bitcoin options volatility surrounding the elections is elevated, with most bets leaning towards call options, which allow traders to buy Bitcoin at set prices. Jeff Mei, COO at crypto exchange BTSE, remarked, “Both presidential candidates have adopted pro-crypto stances to appeal to voters, but it’s difficult to predict if these promises will materialize.”

Data from crypto options exchange Deribit indicates that the put-to-call ratio favors call options. Open interest for call contracts expiring on November 29 is focused around $80,000, with $70,000 being the second most popular bet. For calls expiring on December 27, open interest centers near $100,000 and $80,000, while the leading strike price for calls expiring on November 8 is $75,000.

David Lawant, head of research at crypto prime broker FalconX, shared that the market consensus has turned favorable for Bitcoin. He noted, “Options activity surrounding the elections shows a significant bias towards upside.” Yev Feldman, co-founder at SwapGlobal, added that investors appear to be utilizing the options market primarily to capitalize on potential gains rather than as a hedge against risks. Opinions remain divided regarding the performance of non-Bitcoin cryptocurrencies under various electoral scenarios. Mei concluded, “The market is reacting positively to the possibility of a change in administration, whether it’s Harris or Trump. The potential for the Fed’s first rate cuts in four years and a recent uptick in stock prices supports the notion that Bitcoin could surpass its previous all-time high and reach $80,000.”

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