"Bitcoin to Reach $80,000 by Late November Regardless of Who Wins the US Presidential Election"

Bitcoin Call Option Strike Prices Concentrated Around $80,000

Option investors are expanding their investments, anticipating that the price of Bitcoin, the leading cryptocurrency, will surpass $80,000 (approximately 110 million KRW) by the end of November, regardless of who wins the U.S. presidential election.

[Image source=Reuters Yonhap News]

On the 22nd (local time), Bloomberg News cited data from Deribit, the world's largest cryptocurrency options exchange, reporting that "bets on Bitcoin reaching an all-time high of $80,000 by the end of November are increasing," and that "most are skewed towards call option purchases."

An increase in investors buying Bitcoin call options indicates that more investors expect Bitcoin's price to rise further. A call option grants the right to purchase the underlying asset at a predetermined price (strike price) at a specific point in time.

Currently, in the Bitcoin options market, call options expiring on November 8 have strike prices concentrated around $75,000, and those expiring on November 29 are centered near $80,000. The $80,000 level is about 10% higher than Bitcoin's all-time high of $73,800 recorded last March. As of 8:40 AM, Bitcoin is trading around $67,480 per coin on Coinbase.

David Lowant, Head of Research at cryptocurrency brokerage Falcon X, stated, "The market is evaluating that Bitcoin is likely to perform well regardless of the election outcome." Former President Donald Trump, the Republican presidential candidate, has already shown crypto-friendly actions, while Democratic candidate Vice President Kamala Harris recently promised institutional support for the growth of the cryptocurrency industry if elected, signaling a distance from the regulation-focused Joe Biden administration.

Lowant assessed, "Investors seem to be using the Bitcoin options market more as a tool to capture upward momentum rather than as a hedging instrument." However, regarding altcoins, which refer to alternative cryptocurrencies other than Bitcoin, he noted, "Opinions are more divided for cryptocurrencies other than Bitcoin," adding, "The market has less consensus on how altcoins will move under various election scenarios."