Bitcoin ended a strong September with a sharp decline, nearing $63,000 during Monday’s U.S. trading session. Despite gains throughout the month, the drop has raised concerns among options traders who are bracing for more volatility leading up to the November U.S. elections.
Analysts Claim Bitcoin Rally Will Happen After U.S. Elections
According to Wintermute, a prominent crypto market maker, options traders are preparing for a potential pullback before a post-election rally. While October is typically a favorable month for crypto markets, traders remain cautious, pointing to ongoing uncertainty in both traditional and digital markets.
On Monday, U.S. stock indices traded flat, while European markets saw declines between 1% and 2%. In Japan, Prime Minister Shigeru Ishiba’s sudden assumption of office over the weekend shocked markets, leading to a 5% drop in the Nikkei index. Ishiba emphasized the need for supportive monetary policies, signaling potential global challenges.
In the U.S., Federal Reserve Chairman Jerome Powell made cautious remarks, noting that while the economy remains stable, future rate cuts may not be as aggressive as September’s 50 basis point reduction. Powell also indicated that the Fed is not on a predetermined path and will adjust policies based on evolving economic conditions.
Powell stated, “Looking ahead, if the economy develops broadly as expected, policy will gradually shift toward a more neutral stance,” tempering expectations for immediate further stimulus.
Options Traders Brace for Election Volatility
Options traders are positioning themselves accordingly, and Jake Ostrovskis, an OTC trader at Wintermute, noted that the market is showing signs of downward pressure. He explained, “With spot trading falling below $65,000, the volatility surface shows a bias towards downside protection through October and November. This suggests support for a post-election rally.”
As the market navigates political and economic factors, the Turkish NY Radio audience will be closely watching for signs of recovery and a potential rally once the uncertainty of the U.S. elections subsides.
