Analysis: US midterm elections combined with concentrated Bitcoin option expirations heighten market volatility risks.
According to TechFlow, on October 29, Bloomberg reported that Bitcoin has been hovering near the $80,000 mark this week, with approximately $11 billion worth of Bitcoin options expiring on October 30. With the US midterm elections on November 3 approaching, the market could face increased volatility. Among the expiring options, call contracts outnumber put contracts, and those with strike prices concentrated at $90,000, $95,000, and $100,000 are highly likely to expire worthless in the short term.Analysts indicate that if market makers hold short positions, their hedging activities could accelerate Bitcoin's fall below the $75,000 to $78,000 range; if positioned long, it could cushion the downside. Some option sellers may wait until after the November 3 US midterm elections to establish new positions, which would leave the market without standard Gamma supply to buffer price fluctuations, potentially causing volatility to rise further around the release of election results.
According to TechFlow, on October 29, Bloomberg reported that Bitcoin has been hovering near the $80,000 mark this week, with approximately $11 billion worth of Bitcoin options expiring on October 30. With the US midterm elections on November 3 approaching, the market could face increased volatility. Among the expiring options, call contracts outnumber put contracts, and those with strike prices concentrated at $90,000, $95,000, and $100,000 are highly likely to expire worthless in the short term.
Analysts indicate that if market makers hold short positions, their hedging activities could accelerate Bitcoin's fall below the $75,000 to $78,000 range; if positioned long, it could cushion the downside. Some option sellers may wait until after the November 3 US midterm elections to establish new positions, which would leave the market without standard Gamma supply to buffer price fluctuations, potentially causing volatility to rise further around the release of election results.
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