The Impact Of The US Election On Bitcoin And Ethereum, Here's What It Looks Like!

Ethereum faces bearish pressure ahead of the US election. (Photo; Doc. CryptoCoinSpy)

JAKARTA - Ahead of the election of the President of the United States which will take place on November 5, sentiment in the crypto market shows the striking difference between the two largest digital assets, namely Bitcoin (BTC) and Ether (ETH). With Donald Trump's increasingly strong position, a Republican candidate, compared to Kamala Harris from the Democratic Party in the prediction market, this political movement seems to influence investor behavior differently against the two assets.

Currently, Ether is facing greater bearish pressure than Bitcoin. Recent data from Amberdata and Deribit reveal that Ether's "25-delta risk reversals", an indicator that measures the premium selling options over buying options, shows deeper numbers in the region are negative compared to Bitcoin. This is a sign that market participants are more anxious about the decline in Ether prices in the near future.

Ethereum Is Even Sluggish

In options trading, reversal risk is used to measure market sentiment as well as as a hedging instrument. The more negative the reversal risk figure, the greater the premium paid by traders to protect themselves from potential price drops. For Ether, the option, which expires on October 11, recorded a reversal risk rate of -7.3%, while Bitcoin was at -5.8%.

With Trump's prediction of a 12% lead over Harris, Ether faces a bearish pressure of 7%. The price of Ether is currently trading at $2,415, recording a 1.30% increase in the last 24 hours. However, data from CoinMarketCap shows the majority of the crypto community, which is 67%, is still bearish against Ether, while only 33% have bullish views.

At the time of writing, the price of Bitcoin rose slightly by 0.5% trading at the level of IDR 956 million. While Ethereum is at the level of IDR 37 million, it also rose 1.5% in the last 24 hours on Friday 11 October.