Fun

Record-Breaking Bitcoin Surge Post-Trump Election: Futures Market Hints At More To Come

News Feed - 2024-11-07 03:11:04

The futures market is signaling that the current Bitcoin rally, spurred by Donald Trump’s recent election victory on Tuesday, might be starting. Accordingto 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 priceand 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 13 hours ago


Bitcoin recently surpassed $75,000for 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 reportedthat 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 interventionin 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 inflowsduring 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? 6 hours ago


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. The daily chart shows BTC’s price surge toward new all-time highs. Source: BTCUSDT on TradingView.com


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 

News Feed

US Regulators and Federal Reserve Issue Joint Warning About Crypto Liquidity Risks
US Regulators and Federal Reserve Issue Joint Warning About Crypto Liquidity Risks U.S. regulators and the Federal Reserve have issued a joint warning about key liquidity risks ass
Mastercard Launches Crypto-Linked Payment Cards for Asia-Pacific Region
Mastercard Launches Crypto-Linked Payment Cards for Asia-Pacific Region Payments giant Mastercard is launching crypto-linked payment cards for the Asia-Pacific region in partnershi
a16z invests $100 million in EigenLayer — Report
Zoltan Vardai10 hours agoa16z invests $100 million in EigenLayer — ReportThe investment comes as crypto-related venture capital funding has started increasing following the approval of spot Bitcoin ETFs.1550 Total view
Hong Kong approves first Bitcoin and Ether ETFs
Helen Partz12 hours agoHong Kong approves first Bitcoin and Ether ETFsHong Kong’s securities regulator reportedly approved the in-kind creation model for Bitcoin and Ether ETFs instead of the cash-create model in the U
Technical Analysis: Meme Coins, Avalanche Move Higher on Tuesday
Technical Analysis: Meme Coins, Avalanche Move Higher on Tuesday Meme coins were higher on Tuesday, as the global cryptocurrency marketplace rebounded from recent declines in price
Marcel Pechman11 hours agoHere’s what the latest Bitcoin price correction revealsThe latest episode of The Market Report analyses the recent Bitcoin price correction to $26,000 and what it reveals about the current mar
StackSwap Raises $1.3 Million in Funding Round to Build DEX on Bitcoin Network
StackSwap Raises $1.3 Million in Funding Round to Build DEX on Bitcoin Network press release PRESS RELEASE. Prague, Czech Republic, 5 Nov 2021, StackSwap, the first complete DEX and
Bitcoin In Stalemate With Liquidation Traps On Both Sides Of The Market
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin Whale Entry Prices Diverge Sharply – Confidence Builds At Higher Levels
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Value Locked in Defi Sheds $55 Billion in 2 Months, Ethereum’s Defi Dominance Loses 14%
Value Locked in Defi Sheds $55 Billion in 2 Months, Ethereum"s Defi Dominance Loses 14% The crypto-economy has been sliding in value during the last 48 hours as the current market
Billionaire Bill Ackman Discusses Crypto Regulation — Says Industry Must Self-Police or Risks Being Shut Down
Billionaire Bill Ackman Discusses Crypto Regulation — Says Industry Must Self-Police or Risks Being Shut Down Billionaire Bill Ackman has warned that the crypto industry needs to
Russian Parliament Sets Up Working Group on Cryptocurrency Regulations
Russian Parliament Sets Up Working Group on Cryptocurrency Regulations A working group on cryptocurrencies and related activities will soon begin to meet at the State Duma, the low