Republican

Bitcoin

Edge

Reserve

<ul class="wp-block-list">
 <li>Crypto traders may underestimate post-election risks, delaying volatility resolution.</li>
 <li>Congressional outcomes could influence Federal Reserve policies and asset stability.</li>
</ul>
The much-anticipated U.S. presidential election has arrived, sparking a wave of tension across stocks, bonds, and the crypto market. Investors are preparing for potential turbulence as forecasts point to a highly contested race. Bitcoin remains a focal point, continuing to be viewed as a “Trump trade”, reports QCP.
The “Trump trade”—comprising long positions in the U.S. dollar, crypto, and bets on rising Treasury yields—has gained momentum, boosted by Trump’s advantage in betting markets. Yet, a Harris victory could swiftly reverse these trends, causing pronounced overnight market reactions.&nbsp;&nbsp;
Moreover, the crypto community is bracing for a possible 3.5% fluctuation in Bitcoin prices on election night. However, there is growing concern that traders may be overlooking -post-election risks. The current absence of a volatility premium beyond the November 8 options expiry implies that the market expects a smooth outcome, potentially underestimating delays or contested <a href="https://thenewscrypto.com/is-the-recent-whale-activity-signaling-trouble-for-ethereum/" rel="noopener noreferrer nofollow">results</a>.&nbsp;&nbsp;
<h3 class="wp-block-heading" id="h-traders-vs-historical-patterns">Traders Vs Historical Patterns</h3>
Historical patterns highlight how unpredictable election outcomes can be. In 2016, Donald Trump’s unexpected win triggered an initial slump in U.S. futures, followed by a rapid recovery, with trading volume soaring in the days that followed. Similarly, in 2020, <a href="https://x.com/JoeBiden" rel="noopener noreferrer nofollow">Joe Biden</a>’s victory was not confirmed for four days, leading to trading activity that reached a half-year high.&nbsp;&nbsp;
Beyond the presidential race, the results of congressional contests are equally critical. A Republican takeover could signal higher future fiscal deficits, which may force the Federal Reserve to adopt a more hawkish approach—an outcome that would likely put pressure on risk assets. On the other hand, a divided <a href="https://en.wikipedia.org/wiki/United_States_Congress" rel="noopener noreferrer nofollow">Congress</a> could lead to a more stable environment, calming market volatility.&nbsp;&nbsp;
In the crypto options space, a balanced distribution between calls and puts is evident, with notable activity on both sides. As polling closes and results start coming in, traders expect <a href="https://thenewscrypto.com/is-the-u-s-election-fueling-bears-to-drive-bitcoin-down/" rel="noopener noreferrer nofollow">Bitcoin</a> to experience unpredictable price swings, with the market reacting in real-time to the unfolding political landscape.

Crypto Market on Edge as U.S. Presidential Election Day Arrives

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