Bitcoin reached a new record near $81,000, with investor confidence surging as futures premiums spiked, signaling expectations for continued gains. The recent U.S. elections, which saw numerous pro-crypto candidates elected, are playing a major role in this rally, according to CNBC.
The open interest in Bitcoin’s price exceeding $90,000 has now crossed $2.8 billion on the Deribit derivatives exchange, a popular platform for futures trading. According to CNBC, Deribit holds a significant share of the offshore options market. The options market also reflects strong bullish momentum, as call options, which profit if Bitcoin’s price rises, are trading at a premium compared to puts, which profit if prices fall.
The Chicago Mercantile Exchange (CME) offers Bitcoin futures contracts, a common tool for institutions to speculate on Bitcoin’s future price. Before the election, CME futures premiums for Bitcoin and Ether averaged around 7%. Following the election, they’ve climbed to about 14%, indicating increased investor confidence in these assets. “This recent increase emphasizes the bullish sentiment we’re seeing,” Vetle Lunde, head of research at K33 Research, told CNBC.
Liquidity in the crypto market tends to be lower on weekends, often resulting in amplified price swings. These moves typically stabilize when traditional markets reopen.
In the election, President-elect Donald Trump promised to make the U.S. a global crypto leader. His proposals include creating a national crypto stockpile with the over $16 billion in Bitcoin that the government has seized and slashing interest rates, a move that typically boosts crypto markets by making borrowing cheaper. In line with this strategy, the Federal Reserve recently cut interest rates for the second time, which also fueled a crypto rally. Ether outpaced Bitcoin, rising 30% in the past week, and Solana’s market cap topped $100 billion.
Coinbase, a key player in the crypto industry and a top election donor, saw its stock surge by 48% this week. The company has actively supported pro-crypto candidates and is positioning itself to work with the incoming Congress, which is expected to be more crypto-friendly.
Robinhood, another trading platform for digital currencies, experienced a 27% stock rise this week. Its crypto division aims to collaborate with policymakers to build consumer protections while fostering a supportive environment for the rapidly evolving sector.
These developments are expected to drive further market momentum as investors and institutions closely monitor the implications of a pro-crypto U.S. government.
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