Bitcoin traders are seeking protection against price weakness amid anticipated volatility related to the upcoming U.S. elections. According to the CME's bitcoin options market, put options that are set to expire within a week are priced higher, suggesting a trend where traders are hedging against possible downturns.

"It looks like bitcoin options traders appear to be hedging their bets to the downside ahead of the U.S. election this week," noted one observer.

The sentiment in the options market indicates that there is a significant fear of potential price drops, especially as prices for options offering protection have surged. Furthermore, with the market sensing that Democrats and Republicans are closely competing, forecasts hint at a BTC price swing of between $6,000 and $8,000.

As volatility rises, analysts are cautiously optimistic, with expectations of a year-end rally possibly pushing bitcoin to $80,000 or higher.