Bitcoin open interest drops $2 billion ahead of US elections as investor caution sets in

Insights Bitcoin

Interest in $75,000 call options hints at Bitcoin's upward potential post-election.

Bitcoin investors appear to be adopting a cautious stance as the Nov. 5 US elections approach.

Following weeks of heightened interest in leveraged trading, recent data from Coinalyze shows that the leading crypto has experienced a notable decline in open interest, shedding around $2 billion over the past few days.

This was corroborated by data from Coinglass, which stated:

“Some longs and shorts chose to close their positions before the US election.”

Bitcoin Open Interest (Source: Coinglass)

The dip suggests investors are cautious amid increased risk aversion across the market. The pullback below $70,000 is largely driven by a mixture of profit-taking, dampened market sentiment, and a scarcity of positive news.

As of press time, Bitcoin was trading at approximately $67,731, according to CryptoSlate data.

Singapore-based trading firm QCP suggests this might be a temporary lull before a breakout, potentially pushing Bitcoin toward new highs. Activity in the options market supports this view, with notable interest in “topside” positions and increased purchases of $75,000 call options set to expire at the end of November.

QCP predicts that Bitcoin’s price will likely remain within its current range until post-election clarity emerges. The firm also suggests that a Donald Trump victory could trigger an immediate price surge, while a Kamala Harris win might have the opposite effect.