Friday, June 6, 2025
HomeCryptoBitcoin speculative fervor cools, traders await next Trump steps

Bitcoin speculative fervor cools, traders await next Trump steps

-

[ad_1]

The speculative frenzy around Bitcoin since Donald Trump’s US election victory is moderating both in the spot and derivatives markets.

The largest digital asset slid below $87,000 on Friday after Federal Reserve Chair Jerome Powell said there was no need to hurry interest-rate cuts. That left the token about $6,500 below a record high achieved on Wednesday.

In the derivatives sector, K33 Research said the premium paid for CME-listed Bitcoin futures over the spot market price has declined. US-based institutional investors use the contracts to take positions on the original cryptocurrency. Figures from Amberdata indicate a 24-hour surge in open interest — or outstanding contracts — for bearish options with a strike price of $80,000.

Crypto Tracker

“Markets seem to be cooling down,” said Vetle Lunde, head of research at K33, adding that the narrowing of the futures premium “might have been a subtle hint of moderating risk profiles.”

Trump’s Pledges
Bitcoin has jumped about 30% since the US election on Nov. 5. in response to President-elect Trump’s pro-crypto stance. The digital asset is now viewed as one of a suite of so-called Trump trades, and speculators are wondering how much impetus the rally has left.Trump has pledged to create a friendly regulatory framework for crypto, set up a strategic Bitcoin stockpile and make the US the global hub for the industry. A onetime crypto skeptic, Trump changed tack after digital-asset firms spent heavily during election campaigning to promote their interests. Questions remain about the feasibility and implementation timeline of his promises.Investors poured a net $4.7 billion into US spot-Bitcoin exchange-traded funds after Election Day. The 12 funds, from issuers including BlackRock Inc. and Fidelity Investments, now have total assets of about $94 billion, based on figures compiled by Bloomberg.

Volatility Expected
“It’s all pure speculative trading right now,” said James Davies, chief executive officer at on-chain futures and options trading platform Crypto Valley Exchange. “Expect lots of volatility and a lack of clear signals for a while, whilst we wait for policy announcements in the US.”

Davies flagged $90,000 as a key marker to watch to see if acts as a “resistance level, or if we are well past it.” One of the highest concentrations of bullish Bitcoin options bets is for the $100,000 strike, data from the Deribit exchange show.

Outside of Bitcoin, smaller tokens such as second-ranked Ether and meme-crowd favorite Dogecoin were mixed Friday, in line with easing risk appetite as traders pared bets on Fed rate cuts following Powell’s comments

[ad_2]

Source link

LATEST POSTS

WitchSpin Casino: Daily ₱777 Bonus Explained

Online casinos attract players by offering exciting games and generous bonuses. One of the most popular features of WitchSpin Casino is its daily ₱777 bonus....

Gaming and Adventure Combined: The Ultimate Guide for Norwegian Tourists

For many Norwegian tourists, traveling is all about exploring new places, immersing themselves in different cultures, and seeking unforgettable adventures. But what if your journey...

Non-Disclosure Agreement for Customer Privacy Protection

In today's digital age, privacy concerns are more significant than ever, especially when it comes to safeguarding the personal and sensitive information of customers. Businesses...

How to Analyze Odds for a Spot Bet

The adrenaline rush of Spot Bet—placing wagers while the action unfolds—attracts countless sports enthusiasts seeking to capitalize on their real-time insights. Yet beneath this thrilling...

Most Popular

spot_img