Record-Breaking Bitcoin Surge Post-Trump Election: Futures Market Hints At More To Come
06 Novembre 2024 - 7:32PM
NEWSBTC
The futures market is signaling that the current Bitcoin rally,
spurred by Donald Trump’s recent election victory on Tuesday, might
be starting. According to Vetle Lunde, head of research at K33
Research, the election’s immediate aftermath has seen a “risk-on
rotation” across derivatives, indicating a surge in investor
confidence. Bitcoin Options Market Targets $80,000 By Late November
On the Chicago Mercantile Exchange (CME), the basis—the difference
between the spot market price and futures contract prices—has risen
sharply from 7% to over 15% in a single day, reflecting heightened
interest from institutional investors. Additionally, perpetual
futures contracts, favored by offshore investors, are now trading
at their largest premiums to the spot market since March, further
underscoring rising demand for leverage. Related Reading: Ethereum
Volatility Soon? Derivatives Exchanges Receive 82,000 ETH In
Deposits Bitcoin recently surpassed $75,000 for the first time,
buoyed by expectations that a second Trump presidency will usher in
more favorable policies and regulations for the cryptocurrency
sector, as he has vowed to support the growth of the market, with
BTC at the heart of what could be a new economic policy for the
nation. Before the election, NewsBTC reported that the
Bitcoin options market had already set its sights on an ambitious
target of $80,000 for expiries slated for late November, showcasing
the optimism surrounding the asset’s potential. Analysts Predict
Strong ETF Inflows Post-Election Michael Safai, founding partner at
quantitative trading firm Dexterity Capital, told Bloomberg that
Trump’s administration promises decreased regulatory intervention
in the US, a development many crypto investors have advocated
during previous years of heightened scrutiny. While exchange-traded
funds (ETFs) backed by Bitcoin experienced one of the largest
outflows on Monday, Safai suggests that traders remain optimistic
about a potential reversal. Lunde also indicated that the
European trading session had been relatively quiet. Still, Bitcoin
appears to be finding support at its former all-time highs, a
positive sign for continued upward momentum. Anticipating strong
ETF inflows during US trading hours on Wednesday, the analyst
expects the combination of rising CME premiums and post-election
clarity to bolster Bitcoin’s performance. “The backdrop of
burgeoning CME premiums presents carry opportunities that should
support strong performance,” Lunde explained. However, amidst the
positive outlook, some traders advise caution regarding potential
price corrections. Related Reading: Uniswap Surges Toward $8.74 –
Can UNI Push Through To New Heights? Previous bullish runs, such as
the one witnessed in March following the introduction of Bitcoin
exchange-traded funds, led to significant liquidations across both
directions of the market, with the cryptocurrency recording drops
of over 20% following the record peak. Nathanaël Cohen,
co-founder at INDIGO Fund, cautioned that profit-taking could
trigger corrections at current levels. However, he remains
optimistic about the overall trend moving higher in the coming
months. At the time of writing, BTC was trading at $74,430, up 6.2%
on a 24-hour basis and nearly 4% every week. Featured image from
DALL-E, chart from TradingView.com
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