Key Highlights:

• Bitcoin’s volatility spikes to 63.24% as U.S. election uncertainty fuels market jitters.
• History shows Bitcoin has dipped before past elections, only to rally afterward with impressive gains.

Paradisers! Is the political drama in the U.S. about to shake up the entire crypto market? With the U.S. election tomorrow and a critical Federal Reserve meeting this week, Bitcoin’s volatility is already climbing at an annualized rate of 63.24%, its highest since July, according to data. This spike in implied volatility signals that traders are gearing up for one of the most uncertain weeks of the year.

BTC currently hovers around $69,400, inching up 1.2% on the day. But as polls tighten between candidates, Trump and Harris, market watchers predict that a controversial or disputed result could jolt the crypto markets in unexpected ways.

Bitcoin’s Dance with U.S. Politics

Historically, Bitcoin dips ahead of U.S. elections but has a tendency to rally strongly after. In 2016, BTC dropped by 10.2% pre-election, then rebounded to $1,110. Fast forward to 2020, and BTC surged past $40,000 post-election, a pattern that Carola suggests may just repeat itself.

Crypto prediction markets also add a layer of suspense. Trump’s odds recently dropped from over 66% to 58% on Polymarket, following fresh poll data hinting at a close race. And a close race often means market jitters, especially for assets like Bitcoin that thrive on volatility.

Economic Indicators Add More Fuel

If the election weren’t enough, Thursday brings a pivotal Fed meeting. Economists anticipate a 25-basis point rate cut, potentially boosting BTC as investors eye alternative stores of value. Other key data points, U.S. trade balance and ISM service index on Tuesday, labor data on Thursday, and the University of Michigan’s sentiment index on Friday, are also likely to steer Bitcoin’s short-term path.

Crypto’s Moment in U.S. Politics

As the spotlight on crypto regulation brightens, Edul Patel, Co-Founder of Mudrex, highlights that for the first time, both major parties are endorsing clearer crypto frameworks. “Over 40% of Americans own some form of crypto. This election could be a defining moment,” he says.

With BTC holding near $70K and a volatile week on the horizon, Carola sums it up: “All eyes are on the U.S., and what unfolds here could set the stage for Bitcoin’s next big leap.”