Bitcoin has surged to $71,000 amid the tense US presidential election.
Some market experts predict that market volatility will peak after the election results are announced, which analysts from Bitfinex said could “trigger large moves” or lead to “a deeper correction” in Bitcoin prices.
One trader said he expects Bitcoin to swing “at least” 10% in either direction after the official announcement of the election results. The Bitcoin Volatility Index — a measure of how much people expect BTC to move in the future — hit a three-month high of 65.7 on Nov. 3, before falling to 63.8 at the time of the announcement, according to data from crypto derivatives exchange Deribit.
Counting has begun in many states, with Trump currently leading Harris by 101 electoral votes to 71. The first round of voting will end at 11:00 a.m. UTC on November 5.
The US election results could be announced within hours of voting or could take several days, as narrow margins of victory in swing states could require recounts.
Market volatility could increase after the US Federal Reserve’s Federal Open Market Committee meeting on November 7, when current forecasts show a 94.1% chance of a further 25 basis point rate cut.
