Ethereum Volatility Outpaces Bitcoin Ahead of U.S. Election

According to Nick Forster, founder of decentralized finance protocol Derive, the implied volatility gap for 30-day options on Ethereum versus Bitcoin has reached nearly 7%. Forster explained that both assets had similar levels of volatility last November, but the upcoming election and uncertainty surrounding the future of decentralized finance regulation in the U.S. have had a significant impact on traders’ expectations.

“Ethereum’s increased volatility is a reflection of traders’ growing expectations of uncertainty, especially ahead of the election,” Forster noted. As the second-largest cryptocurrency by market cap, Ethereum plays a major role in the smart contract industry, which powers various DeFi protocols.

There are significant spikes in implied volatility between October 25 and November 8. Specifically, implied volatility for Ethereum is 76.6%, while for Bitcoin it is 69.8%, indicating that Ethereum is more sensitive to external events.

While both assets remain relatively neutral, Bitcoin is starting to show a slight deviation, indicating a slight bullish sentiment. The CryptoQuant representative noted that Bitcoin is entering a period of seasonal growth, which is often seen in the fourth quarter during bullish cycles. A recovery in demand and favorable seasonality could allow Bitcoin to reach $85,000 to $100,000 in the coming months.

The US election is becoming a major factor for cryptocurrency markets, with key candidates such as Kamala Harris and Donald Trump trying to gain support from industry participants. Trump is seen as more supportive of creating clear policies for cryptocurrencies, while Harris has recently begun discussing the topic, although her position remains vague.

According to Forster, traders are increasingly confident in Bitcoin’s ability to overcome macroeconomic challenges.