Bitcoin Volatility Soars Ahead of Trump’s Inauguration: Traders Brace for Potential Market Swings

On January 15th, COINOTAG News reported insights from The Block indicating that the Bitcoin derivatives market is forecasting increased **volatility** as Donald Trump’s second inauguration approaches on January 20th. Data from Derive.xyz, a derivatives trading platform, reveals a notable **bearish sentiment** in the medium term, with Bitcoin put options now representing **40%** of total open interest—an increase observed over the past week. Sean Dawson, Head of Research at Derive.xyz, emphasizes this trend as a signal that traders are actively **hedging** against potential **downside risks**. Furthermore, Bitcoin’s implied volatility has seen an uptick, with the 7-day **IV** climbing by **3%** to reach **56.5%** and the 30-day **IV** rising by **1.5%** to **57.5%**. Such changes suggest a growing anticipation of substantial price fluctuations leading into the inauguration event.

In contrast, Ethereum is displaying an even heightened sense of **volatility**. Over the last 24 hours, its 7-day **IV** has surged by **6%** to **74%**, while the 30-day **IV** increased by **2.5%** to **69.5%**. Dawson attributes this disparity to Ethereum’s pronounced **sensitivity** to macroeconomic shifts and speculation surrounding post-inauguration policies, implying that Ethereum traders are bracing for more pronounced short-term **volatility** compared to Bitcoin.