Analysis: BTC implied volatility hits three-month high on the eve of the US election

Betting on signs that the U.S. presidential race will be tight in key swing states, an options-based gauge of expected price volatility for BTC hit a three-month high. Crypto options exchange Deribit’s BTC Implied Volatility Index (DVOL) rose to an annualized 63.24%, the highest since late July, according to charting platform TradingView. BTC’s seven-day implied volatility, which covers Thursday’s Federal Reserve meeting and Friday’s expected election results, has jumped to an annualized 74.4%, well above the seven-day realized or historical volatility of 41.4%. In addition, options gauges that measure expected price swings over four weeks have also seen sharp increases in the foreign exchange and U.S. Treasury markets, with the Ice BofA Move index, which measures 30-day implied volatility for U.S. Treasuries, jumping to 135% on Friday, the highest since October 2023. (CoinDesk)