Historically, Bitcoin (BTC) has shown a negative correlation with the dollar index (DXY). However, as the U.S. elections approach, this trend may shift based on options trading indicators.

At the time of writing, one-month 25-delta BTC risk reversals showed a 1.20 skew towards calls, suggesting a bullish sentiment about BTC for the next four weeks according to trading at the Chicago Mercantile Exchange, which often reflects institutional activity. The presidential election is scheduled for November 5, with results expected on November 8.

Analysis of Current Market Trends:

• Options indicate a bullish near-term outlook for both BTC and USD.
• Increasing probability of a Trump victory has heightened demand for exposure to BTC upside.

Dollar flying. (QuinceCreative/Pixabay)

Traders are increasingly purchasing call options for BTC, some at strike prices as high as $100,000.

"The upside potential linked to a Trump win is significant. We anticipate BTC USD reaching $70,000 in the coming weeks, with continued support from current downside levels and a likely breakout in equities," said Jonathan de Wet of Zerocap.

The elections have become a critical narrative for the crypto market over the past six months, particularly with Trump's favorable policies towards the industry, contrasting the unclear stance of a potential Kamala Harris administration.

Conclusion: The next few weeks leading up to the election might be crucial for Bitcoin, as traders prepare for a potential market shift influenced by political outcomes.