Bitcoin (BTC) has experienced a significant spike in volatility, with its seven-day implied volatility skyrocketing to an annualized 74.4%. This is notably higher than the historical volatility of 41.4%, revealing how external events are influencing market behavior.

The surge in volatility is particularly relevant as the financial market braces for the impending Federal Reserve meeting this Thursday and electoral outcomes expected shortly after.

Recent polling data adds to the tension in the market, with a New York Times/Siena poll showing a dead heat between former President Donald Trump and incumbent Vice President Kamala Harris at 48%. Meanwhile, a separate Marist survey indicates Harris leading Trump by two points when undecided voters are included.

As we approach the critical presidential election scheduled for November 5, results of the voting will be revealed on November 8, further complicating the financial landscape.

Earlier in the week, Bitcoin nearly reached record price levels, hitting $73,500 amid sentiment favoring Trump's election chances. However, this optimism has since dwindled, leading to a decline in Bitcoin's value, which dipped below $68,000 this morning.

This decline reflects apprehension in the market, as traders reassess their positions in light of shifting political forecasts.

Furthermore, the increased volatility in U.S. Treasury notes—critical to global leveraged financing—has instigated a tightening of liquidity.

This environment often prompts traders to reduce their exposure to riskier assets, with cryptocurrencies like Bitcoin being particularly affected.

As the election draws closer and more economic indicators emerge, the crypto market's volatility may continue to reflect broader sentiments about political stability and economic outlooks.

Traders and investors alike are advised to keep a vigilant eye on both financial and electoral developments moving forward.

Are you ready for the unpredictable ride ahead?