Bitcoin has experienced a record-breaking surge following Donald Trump's recent election victory, as indicated by a significant "risk-on rotation" across derivatives in the futures market. This surge reflects heightened investor confidence, according to Vetle Lunde from K33 Research.
On the Chicago Mercantile Exchange (CME), the basis has dramatically increased, highlighting intense interest from institutional investors. Perpetual futures contracts, particularly those favored offshore, are trading at their highest premiums since March, indicating a substantial demand for leverage.
Bitcoin's recent climb past $75,000 has been driven by expectations that a Trump presidency will support favorable policies for the cryptocurrency sector, potentially making BTC a central part of new national economic policies.
Market analysts have identified a possible $80,000 target for Bitcoin options expiring in late November, underpinning current market optimism regarding the cryptocurrency's long-term potential.
Amid anticipated strong ETF inflows post-election, analysts like Michael Safai suggest that Trump's potential reduced regulatory intervention could positively influence the US crypto landscape. Despite some ETF outflows earlier, optimism for a market turnaround remains high.
Although the European trading session showed little activity, Bitcoin's support at its previous all-time highs suggests continued upward momentum, supporting forecasts of future growth.
Despite encouraging trends, traders remain wary of potential price corrections as history shows that prior upward trends sometimes lead to significant market liquidations, causing substantial price drops.
Veteran market watchers express optimism about Bitcoin's trajectory, predicting that despite possible corrections, the overarching upward trend will persist in the coming months.
