Bitcoin and Ethereum Volatility Ahead of Elections

As former President Donald Trump's odds of victory decrease, Bitcoin's price has also fallen and volatility has increased. The cryptocurrency's forward volatility for BTC and ETH spiked overnight. According to Nick Forster, founder of Derive.xyz, Bitcoin's volatility now sits at 80.30%, up from 72.20%, while Ethereum's is at 82.92%, up from 75.40%.

Forster stated, "This escalation reflects traders bracing for the election results, which could sway market prices substantially." He projected a two-in-three likelihood that election night could lead to significant price swings, estimating Bitcoin's range between -8.97% and +9.85% and Ethereum's between -9.25% and +10.19%.

Bitcoin's price dropped from about $72,600 on October 31 to a low of $67,500 (a 7% decrease), recovering slightly to $68,600 at publication. Forster's analysis suggests a 68% chance of the cryptocurrency rising to $75,400 or falling to $62,500 following the election.

Currently, total call open interest for Bitcoin is 1,179, compared to 885 puts, indicating a bullish market stance despite increased volatility.

Similarly, Ethereum has experienced a -9.2% price drop since October 30 and is now around $2,450. Forster predicts a 66% chance for Ethereum to reach as high as $2,700 or fall to $2,222, with a 5% chance of dropping below $2,000 or rising above $2,975.

A Standard Chartered analyst has also indicated potential high volatility in crypto prices around the U.S. Presidential election on Tuesday.