Highlights. Following Donald Trump's election victory, the price of bitcoin has surpassed $75,000 and the bitcoin futures market is showing strong bullish sentiment.
Demand for #bitcoin derivatives has surged, with US institutional investors favoring CME futures and international investors increasingly turning to open-ended contracts. According to Bloomberg, the new momentum in the bitcoin futures market came amid hopes of former U. S. President Donald Trump's return to power, which could lead to policies favorable to the #cryptocurrency .
After the election results, the price of bitcoin jumped to new highs, surpassing the $75,000 mark. The options market has set a target of US$80000 for the end of November, reflecting the growing bullish sentiment among investors.
Commenting on the derivatives market's "turn to risk" after Trump's victory, Vetr Lunde, head of research at K33 Research, said. The CME's basis #rose from 7 percent yesterday to over 15 percent today, and PERP went from trading below the spot market to the largest premium to the spot market since March, Lunde said.
Bitcoin futures contracts are the preferred way for U. S. institutional investors to enter the cryptocurrency market on CME derivatives exchanges, especially during bullish periods. On the other hand, offshore investors are increasingly favoring open-ended futures, and rising funding rates indicate a growing demand for leverage.
Despite such enthusiasm, some participants are cautious about the price correction. They compare it to the previous rally in March, which resulted in significant gains and massive liquidations. There is growing concern about the historical volatility associated with bitcoin's bull rally, similar to what was seen earlier this year when the Bitcoin #ETF fund was launched.
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