As a seasoned crypto investor with a knack for spotting trends, I’ve seen my fair share of bull and bear markets. Having weathered through the crypto winter and witnessed the meteoric rise of Bitcoin in 2017, I must say, the current rally seems reminiscent of that time, but with a twist – this time it’s fueled by political events rather than mere hype.
The Bitcoin rally that followed Donald Trump’s recent election win on Tuesday may be just beginning, according to signals from the futures market. Vetle Lunde, head of research at K33 Research, explained that the immediate aftermath of the election has led to a shift in investor behavior known as “risk-on rotation” across derivatives, suggesting an increase in investor confidence.
Bitcoin Options Market Targets $80,000 By Late November
On the Chicago Mercantile Exchange (CME), the gap – or difference – between the cost of buying an asset now (the spot market price) and the cost of a future delivery (futures contract prices) has significantly increased, going from 7% to more than 15%, in just one day. This surge suggests a growing appetite for these investments among institutional investors.
Furthermore, it’s worth noting that perpetual futures contracts, a preferred choice among offshore investors, have reached their highest price differences compared to the spot market since March. This trend emphasizes the increasing appetite for leveraged trading opportunities.
Bitcoin reached over $75,000 for the first time ever, boosted by anticipation that another Trump term might bring advantageous policies and regulations in the cryptocurrency industry. As he has expressed his intent to nurture market expansion, with Bitcoin potentially playing a key role in a potential new economic strategy for the country.
Prior to the election, it was previously stated by NewsBTC that the Bitcoin options market was aiming high, with a goal of reaching $80,000 by late November. This demonstrates the positive outlook and anticipation towards the asset’s possible growth.
Analysts Predict Strong ETF Inflows Post-Election
According to Michael Safai, co-founder of the quantitative trading firm Dexterity Capital, the prospect of reduced government regulation under the Trump administration is something that many cryptocurrency investors have long hoped for amidst years of increased oversight. (Bloomberg reported this.)
As an analyst, I observed a significant outflow of investments from Bitcoin-backed Exchange-Traded Funds (ETFs) yesterday. However, I maintain an optimistic stance, following the lead of Safai, who anticipates a possible turnaround in the near future.
Lunde further noted that the European trading period was rather subdued. However, Bitcoin seems to be receiving support at its previous peak levels, suggesting potential continuation of its upward trend.
As an analyst, I am eagerly anticipating substantial inflows into Bitcoin Exchange-Traded Funds (ETFs) during regular U.S. trading hours on Wednesday. The confluence of climbing Commodity Market Exchange (CME) premiums and the post-election certainty seems poised to significantly boost Bitcoin’s performance, in my view.
In simple terms, Lunde stated that the rising prices for Certificate of Deposit alternatives (CME Premiums) offer chances to earn interest or profit (carry opportunities). These opportunities should boost performance, but some traders are suggesting a need for care because there might be sudden drops in price (potential corrections).
In simpler terms, when Bitcoin exchange-traded funds were introduced in March, there was a surge in optimism (bullish run) that caused large sell-offs (liquidations) in both buying and selling sides of the market. After reaching an all-time high, Bitcoin experienced drops exceeding 20%.
Nathanaël Cohen, a partner at INDIGO Fund, warned that selling for profits might lead to drops at present prices. Yet, he maintains a positive outlook, expecting the general upward trajectory to continue over the next few months.
Currently, Bitcoin is being exchanged for approximately $74,430, marking a 6.2% increase over the past day and a near 4% rise in weekly terms.
Read More
- POPCAT/USD
- Who Is Finn Balor’s Wife? Vero Rodriguez’s Job & Relationship History
- The White Lotus’ Aimee Lou Wood’s ‘Teeth’ Comments Explained
- Coachella 2025 Lineup: Which Artists Are Performing?
- DYM/USD
- Who Is Kid Omni-Man in Invincible Season 3? Oliver Grayson’s Powers Explained
- General Hospital Cast: List of Every Actor Who Is Joining in 2025
- Beauty in Black Part 2 Trailer Previews Return of Tyler Perry Netflix Show
- Kingdom Come Deliverance 2: How To Clean Your Horse
- Leaked Video Scandal Actress Shruthi Makes Bold Return at Film Event in Blue Saree
2024-11-07 01:55