Bloomberg: The options market focuses on the Federal Reserve meeting before the US election, and the panic in the crypto market intensifies


The US presidential election has gradually faded from people's sight, and investors' attention has shifted to the Federal Reserve meeting on September 18. Any policy mistakes could disrupt the market, which is already nervous due to signs of economic growth slowdown. Rocky Fishman, founder of derivatives analysis company Asym500, said, "The main focus of the market in recent times may be on the Federal Reserve and the beginning of the interest rate cut cycle. Although stock options have reflected higher risks around the election day, the actual trading volume of options related to the election has been limited." Traders are also waiting for the debate between Harris and Trump on Tuesday to further determine their bets on who will win the election. Investors will analyze the candidates' positions on issues such as tariffs, immigration policies, and corporate taxes. John Divine, head of over-the-counter trading at digital asset trading and technology company Block Fills, said that the short-term positioning of Bitcoin is exceptionally bleak. He said, "The current bet is bearish before October 25th, and slightly bullish before the election. When looking at November, we begin to see that the call options are trading at higher prices than the put options, but this is not the case, which is quite shocking to me and highlights the panic in the market." Divine added that although Trump is more favored by the cryptocurrency market, the boundaries of who supports the crypto industry are becoming increasingly blurred. "I don't think the market is trading entirely for the winner of the November election. More importantly, they are using this event to push the narrative that fits the current bearish stance."