The post U.S. Elections Drive High BTC Volatility Expectations appeared on BitcoinEthereumNews.com.

BTC approaches an all-time high amid election week anticipation, while ETH remains subdued, failing to break $2.7k levels. BTC futures and options open interest surged, with implied volatility indicating a significant risk premium ahead of the U.S. elections. Recent market updates from QCP Capital expose interesting swings and reactions linked to the U.S. economy and approaching election week. With a 2.7% year-over-year increase instead of the expected 2.6%, Thursday’s Core Personal Consumption Expenditures (PCE) data exceeded expectations. Friday, however, presented a different surprise with Non-Farm Payrolls (NFP) statistics showing just 12,000 instead of the projected 110,000, much below forecast. As market players reviewed their positions, this mixed economic picture caused the U.S. Dollar Index (DXY) to recover and reach the 104 level. Market Reactions Highlight Cautious Sentiment Ahead of Election Week  U.S. unemployment was constant at 4.1%, a fact that highlights ongoing labor market resiliency even with the dismal NFP data. This change has increased the chance of a 25 basis point rate reduction in November, which today stands at 96.4%. Equity indexes have also reflected the market’s response; Friday closed on a bullish note after strong Amazon (AMZN) earnings. U.S. Treasury yields, which first fell in reaction to NFP data, later peaked four months from now. This change shows market caution ahead of Election Week since traders are still reluctant to commit significant bond purchases. Adding to the market dynamics, Brent and West Texas Intermediate (WTI) crude oil prices showed no increase in response to rumors implying Iran was getting ready for a retaliatory strike on Israel. This geopolitical uncertainty brought a layer of risk that affected the general attitude and asset movement during the week. BTC Outshines ETH as Institutional Inflows Boost Crypto Market  Bitcoin (BTC) added more mystery since it reached a trading figure of $73,600 on…

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Filed under: News - @ November 3, 2024 9:08 am