The Election Bull Run From the Perspective of Options Markets

In this issue of Coin Metrics’ State of the Network, we’ll break down what went down in the markets around the election. We’ll also take a special look into how options markets are shaping up amidst a period of high levels of activity and uncertainty. 

Key takeaways:

• • • Trading activity reached historic levels during and after the election as Bitcoin surged to all-time highs.

    • Elevated levels of open interest weighted towards call options at high price levels signal strong bullish sentiment.

    • Implied volatility can reveal general sentiments of uncertainty ahead of major events. IV was high heading into the election and sharply dropped after its resolution.

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