TL;DR
- Bitcoin’s record rally could continue, fueled by Trump’s victory and a surge in futures demand.
- The spread between Bitcoin futures and spot market prices has reached record levels, with strong demand for leverage.
- Bitcoin-backed ETFs could see positive inflows in the coming hours, due to political clarity following the US elections.
The Bitcoin futures market has shown signs of a continued rally, especially following Donald Trump’s victory in the US presidential election.
This new bullish phase has led the price of Bitcoin to exceed $75,000, an important milestone that has sparked the interest of both institutional investors and more speculative traders.
According to a report by K33 Research, premiums on Bitcoin futures contracts on the CME Derivatives Exchange have seen a substantial increase, suggesting that demand for leverage is on the rise.
This move in the derivatives market could indicate that the rally has not only reached a new peak, but may just be beginning.
The report notes that the difference between futures and spot market prices, known as the “basis,” has jumped from 7% to 15% in just one day.
This type of increase is an indication that Bitcoin futures are gaining ground against the spot market which is particularly important for investors looking to take advantage of rising prices using leverage.
Additionally, Bitcoin perpetual contracts, which are very popular among investors outside the US, have also seen a surge in demand, reflecting widespread confidence in the continuation of the uptrend.
Trump’s victory has played a key role in this scenario, as many investors expect a second term for the former president to be favorable for cryptocurrencies.
The promise of less restrictive policies and less regulatory intervention in the crypto sector is seen as a positive sign for the market.
Analysts suggest that the performance of futures and expectations regarding Bitcoin-backed ETFs are indicative that the uptrend could continue even further.
The future of Bitcoin-backed ETFs
One of the most talked about aspects following Trump’s victory is the possible impact on Bitcoin-backed exchange-traded funds (ETFs).
Although these funds saw significant capital outflows in the days leading up to the election, traders expect a reversal of this trend, with positive flows likely to materialize in the coming trading sessions, especially during US hours.
Analysts at K33 Research point out that the widening spread in futures premiums could create “carry opportunities” additional profit opportunities in the derivatives market which would further boost flows into ETFs.
However, despite the positive expectation, some traders warn of the risk of price corrections.
The current rally resembles the situation experienced in March 2024, when the launch of Bitcoin ETFs generated large liquidations, both on the upside and on the downside.
Despite this risk, many consider the general trend for the coming months to be bullish, which could further consolidate Bitcoin as one of the main bets in the world of digital investments.