19:17 ▪ 3 min read ▪ Written by Luc Jose A
As the US presidential election approaches on November 5, 2024, the crypto market is preparing to face a period of high volatility, with Ether (ETH) in the lead. Unlike Bitcoin (BTC), which is considered a relatively stable safe-haven asset, ETH is gaining attention due to its close ties to the decentralized finance (DeFi) ecosystem. Investors are focused on possible regulation following the election of pro- or anti-crypto candidates and are predicting extreme price swings.
Ether volatility peak expected around US election
Ether, currently worth $2,372, will experience unusual volatility in the days leading up to and following the US presidential election. Traders expect volatility to increase from October 25, 2024, in line with the November 5 election deadline. ETH price is expected to fluctuate between -14% and +16% in the three days after the election, with a probability of 68%. Traders also estimate there is a 95% chance that the range will widen further, with a range of -26% to +35%.
This expectation is primarily related to potential regulatory concerns in the DeFi space, an area where Ether plays a key role as a platform for smart contracts and other decentralized applications. The very nature of DeFi makes ETH more vulnerable to political decisions, especially if candidates hostile to blockchain innovation win elections.
Bitcoin, a safe haven in the face of macroeconomic storms
While Ether is under regulatory threat, Bitcoin has positioned itself as a more stable asset, less susceptible to macroeconomic events. Therefore, traders seem confident in Bitcoin’s ability to weather these disruptions. As a “digital store of value,” Bitcoin is in a stronger position with less direct exposure to regulatory issues that may arise from elections. BTC, currently worth $61,048, has also experienced increased volatility, but at a lower level than ETH. Additionally, future volatility is estimated at 69.8% versus 76.6% for Ether.
Indeed, Bitcoin’s status as a “store of value” limits its direct exposure to political uncertainty and allows it to serve as a safe-haven asset during volatile times. . Additionally, the Bitcoin ecosystem is less reliant on decentralized applications than Ether, making it more resilient to election disruptions.
As the US presidential election approaches, crypto investors should prepare for significant market fluctuations, especially in Ether, which could result in large swings depending on the election results. Bitcoin, on the other hand, may offer relative stability in this uncertain climate.
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Luc Jose A.
Toulouse Scientific Diploma and Certification Consultant Alila Blockchain Exam Rejoined 2019 Coin Tribune. Examining the potential of blockchain in the field of economics, and the relationship between public sensibilities and information providers that will bring about a certain evolution of the social system for learning economics. The month is about understanding blockchain and its opportunities. Analyze the purpose of reality, decipher the trend of marche, analyze the innovative technology and perspective, and analyze the social revolution of marche.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.