Bitcoin Volatility Predicted Amid US Election by Standard Chartered Expert

In the days leading up to the US elections, the price of Bitcoin may decline, followed by increased price volatility. This opinion was expressed by Standard Chartered researcher Jeff Kendrick.

Despite testing levels around $73,500, the leading cryptocurrency has yet to surpass the record high set in March above $73,700.

Kendrick believes that pre-election volatility will lead to mass liquidations of positions. In turn, this will reduce the likelihood of reaching a new ATH.

“There is a risk of pre-election position closures. This means that on election day, we are more likely to be below the $73,000 mark than above it,” the specialist shared.

Pre-Election Uncertainty

Kendrick added that as November 5 approaches, the seven-day skew of option volatility may rise relative to thirty-day contracts. This indicates increased uncertainty or interest in short-term trades.

“This is because it will take several days to obtain full results,” the expert explained.

He noted that this situation might resemble the volatility before the approval of spot ETFs in early January.

The researcher added that options markets can quite accurately assess expected volatility ahead of significant events.

Kendrick also expressed the view that a Republican victory in the US Congress elections could significantly boost Bitcoin — up to $125,000 by the end of the year — and trigger an “altcoin season.”

“We believe that a Republican victory will be particularly beneficial for Solana in this context,” the expert concluded.

Earlier, analysts from Tyr Capital and Bitget Research also warned of increased volatility following the US elections.