After the U.S. midterm elections, Bitcoin option volatility fell... preparing for a decline ahead of the inflation report.

Bitcoin's 30-day implied volatility gauge DVOL fell to 39 on November 4 from a close of 40 on October 31, according to a Bitfinex report, as the U.S. midterm elections passed and traders unwound the risk-hedging premium they had paid ahead of the vote. Downside protection nonetheless remained more expensive than upside exposure, signaling persistent caution rather than outright optimism. Options positioning across maturities also showed traders preparing for the upcoming inflation data release rather than the election outcome. The shift matters because it suggests the market has moved past event-driven election hedging and is now pricing macro data risk, particularly CPI, as the next catalyst for bitcoin volatility.