Bitcoin Volatility Jumps to 3-Month High Ahead of U.S. Election
Investors in crypto and traditional markets bet that impending U.S. presidential election will breed price volatility.
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Investors in crypto and traditional markets bet that impending U.S. presidential election will breed price volatility.
Instead of being scared by the nonstop nature of crypto markets, investors should see it as an exciting opportunity to grow their portfolios — especially with the help of a skilled crypto advisor who can guide you through the complexity.
With the U.S. presidential election polls showing a tense race, cryptocurrency investors are bracing for volatility. But how important is the outcome of the election for the future of crypto in the medium to long run?, poses Gregory Mall.
Bitcoin price on Aug. 27 (CoinDesk)
Bitcoin’s Bollinger bandwidth has narrowed to levels that have historically preceded volatility explosions.
Bitcoin’s volatility is expected to continue declining with every halving. The next one, scheduled for 2028, will render bitcoin four times as scarce as gold. Increasing retail and institutional adoption of this technology is also bound to decrease volatility structurally over time.
Deribit’s BTC DVOL index, a measure of volatility expectations, has slipped to lowest since early February.
Institutions need to broaden their holdings of crypto holdings in order to capture the full range of innovation in the market, says Felix Stratmann, head of research at Outerlands Capital.
The excitement surrounding the impending debut of spot ether ETFs in the U.S. has investors anticipating higher ether price swings relative to bitcoin.
The cryptocurrency is already showing signs of maturity as its volatility drops to all-time lows on a yearly scale, the report said.