Analysts noted the uncertainty of options market participants on the eve of the US election

Against the backdrop of the upcoming US elections, the amount of funds invested in bitcoin-ETFs over the day is nearing a record $1 billion, pushing the bitcoin price close to an all-time high. However, despite such a significant inflow of capital, the options market has not shown the same strong growth, showing mixed signals. This was revealed by the researchers of the Deribit platform.

According to them, traders are engaged in a variety of strategies: locking in profits on December and March options, selling long-dated contracts, buying December and March calls with a high strike of $85,000, and actively making transactions with option risk-reversals to hedge potential losses.

According to experts, it can be seen that investors are locking in profits on options for November and buying new contracts, expecting price movement in the short term. At the same time, the market shows a positive bias towards calls, but remains within normal limits.

“Volatility in the market has been stable in recent days, despite spikes in short positions that have caused sharp changes in price. The main factor influencing the market structure remains the upcoming November 8, the US election day, which is expected to be a key event for the market, given the high probability of a sharp change in investor sentiment,” the experts said.

In their opinion, options with expiration in November deserve special attention. Since most of them are “discount” and expire immediately after the election, traders actively use them to trade on short-term market fluctuations. However, according to analysts, the more important event for a long-term strategy may be January, when the inauguration of the new president will take place. This has the potential to have a lasting impact on the bitcoin exchange rate depending on changes in economic policy.