Key Points
- Despite overall caution, hedge funds remain bullish on Bitcoin [BTC] amidst US election results.
- Large funds are anticipating significant price swings but are still optimistic about BTC’s potential.
Despite the impending US election results and the market’s overall caution, hedge funds’ stance on Bitcoin [BTC] remains largely optimistic.
Last week, BTC came close to an all-time high (ATH) after it soared above $73K. This surge was driven by strong BTC ETF demand and the increasing odds of Trump winning the election.
Expectations for BTC’s Potential
However, the election week painted a different picture. Kamala Harris was closing in on Trump’s odds on Polymarket and was nearly at a 50/50 chance on Kalshi, another prediction site. Despite the tight race, hedge funds were mainly bullish but took precautions for any market direction.
According to the latest data from Deribit, the options market witnessed a significant buying of calls for $70K-$85K targets by November. This data suggests that large funds were expecting substantial volatility around election day.
Possible Delay in Election Outcome
Interestingly, traders were shifting their focus from 8th November option expiries to 29th November, indicating an expected delay in the election outcome, likely due to controversies or rigging claims.
This short-term cautious approach might have led to the recent de-risking observed in the spot market towards the end of last week. BTC dropped from last week’s high of $73.6K to below $68K, and some analysts predicted it might drop even lower, citing historical patterns around election day.
Despite the uncertainty of the election outcome, the positioning of large funds indicates a potential recovery for BTC.
