5 November Major Crypto News: Bitcoin Holds Steady Post-$68K Dip as Election Volatility Looms
With Bitcoin stabilizing after dipping below $68,000, market eyes remain on the crypto space as the U.S. presidential election draws intense focus. Dogecoin has emerged as the day’s standout, rallying nearly 13.15% in the last 24 hours as the only major token in the green. Meanwhile, Bitcoin traders are taking precautionary steps against potential election-driven market shifts, loading up on short-term put options to hedge against any downside risks. This article delves into the latest on these critical developments in the crypto world.
Mt. Gox Wallet Activity Sparks Bitcoin Selling Concerns on Election Day
Bitcoin has recovered from a decline below $68,000 and is essentially unchanged. In addition to traders looking for hints about the next market move due to today’s U.S. presidential election, Mt. Gox activity has also threatened Bitcoin. The bankrupt cryptocurrency exchange put selling pressure on Bitcoin by moving more than 32,000 BTC ($2.2 billion) to unregistered wallet addresses, which is frequently an indication of an upcoming transfer to exchanges.
Dogecoin Rallies 13% on Musk’s Republican Support as Election Approaches
With a gain of around 13.15% in the past day, DOGE is the only significant token that is up. Elon Musk, a tech entrepreneur, has reaffirmed his support for the Republican campaign, which has caused the memecoin to soar by more than 58% in the last month. Musk has suggested creating a Department of Government Efficiency to improve the efficiency of government spending and financial planning. If Donald Trump wins, observers will anticipate more gains, but regardless of the outcome, many analysts are projecting a market-wide rally after the election.
Put Options Surge as Bitcoin Traders Brace for Post-Election Volatility
By purchasing put options that expire within the next week, Bitcoin traders are protecting themselves from any declines in the wake of the election. A call option grants the buyer the right, but not the responsibility, to later purchase the underlying asset at a certain price. The right to sell is granted by a put option. According to researchers at CF Benchmarks, contracts with a one-week expiration date have a slightly negative skew (putting puts more expensive than calls) through a 0.25 delta risk reversal. This is in contrast to contracts with longer-dated maturities of two weeks or thirty days, where the skew returns to being positive.
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