CME’s Bitcoin options trading volume is rising as institutional investors position for potentially significant price moves in the days following the November 5 U.S. election.
CME Bitcoin Options Volume Soars Ahead of US Elections
According to Arbelos Markets CEO Joshua Lim, institutional trading is showing a strong bullish trend, with some claiming that the Bitcoin price could rise above $85,000 by late November.
Lim highlighted a notable trade involving 3,050 Bitcoin units in options expiring on November 29 with a strike price of $85,000.
This transaction, with a premium of $4.6 million and a delta of $42 million, indicates a confident view among institutional traders that the Bitcoin price will surpass the $85,000 level by the end of November.
“CME bitcoin options saw some of its highest volume days ahead of the election, with bullish positions becoming increasingly evident,” Lim said, noting the potential for increased liquidity as more institutions join the crypto derivatives markets.
Trump Gains the upper hand in betting markets
Bitcoin is also becoming a hedge against inflation and a proxy for the upcoming elections, especially in scenarios that favor Donald Trump.
Trump currently has a 64.5% lead on blockchain-based betting platform Polymarket to Vice President Kamala Harris’ 35.4%.
“The options market is pricing in a 7% move on election day, but that may be conservative given bitcoin’s volatility,” Lim said.
*This is not investment advice.