Bitcoin Options Traders Setting Sights on 80000 Regardless of US Election Winner

Bijie.com reports:
Options traders are increasing their bets that regardless of who wins the US presidential election, Bitcoin will reach a record high of $80,000 by the end of November.
The implied volatility of Bitcoin options expiring around Election Day on November 5th is high, with bets favoring call options that give buyers the right to buy at new highs.
“I believe there is a market consensus that Bitcoin may perform well regardless of the election outcome,” said David Lawant, Head of Research at cryptocurrency prime broker FalconX. “Our analysis shows a clear bias towards bullish options activity surrounding the upcoming election.”
Open interest in call options expiring on November 29th is concentrated around an exercise price of $80,000.
Republican candidate and former President Trump openly supports cryptocurrencies, to the extent that Bitcoin is seen as a so-called Trump trade. Democratic rival Vice President Harris, on the other hand, expresses support for establishing a regulatory framework for the industry. These contrast sharply with the Biden administration’s crackdown on the industry. Non-political factors such as further rate cuts by the Fed and inflation are also believed to fuel optimism.
In March of this year, Bitcoin reached a historical high of $73,797 after weeks of consecutive gains, as investors optimistically anticipated demand exceeding supply due to the issuance of Bitcoin ETFs this year. After reaching a new high in March, Bitcoin fell more than 30% between August and early August before embarking on the current bull market.
The largest cryptocurrency briefly rose to $69,474 on Monday before falling to around $66,800. The last time Bitcoin reached $70,000 was on June 12th, with a cumulative increase of about 60% since the beginning of this year.
Data compiled by Deribit, the largest cryptocurrency options exchange, shows that the ratio of put options to call options is declining towards the end of the year, with traders buying more call options than put options.
“We see traders buying call options around $68,000 and buying put options around $66,000, which means many people continue to build positions or adjust them to protect against a breakout in either direction,” said Yev Feldman, co-founder of SwapGlobal, which offers derivatives such as swaps and options to US digital asset investors. “The reasons for a decline after the election are limited, so an increase is more reasonable.”
Open interest in call options expiring on November 29th is concentrated around an exercise price of $80,000, followed by call options with an exercise price of $70,000. Data shows that open interest in call options expiring on December 27th is concentrated around exercise prices of $100,000 and $80,000, while the most popular call option expiring on November 8th is the one with an exercise price of $75,000.
This article is sourced from Finance.Jiemian.com.