Crypto Market Surges to New Heights Amid Pro-Crypto Election Wins
The world of cryptocurrency is abuzz with excitement as Bitcoin reaches a fresh all-time high of nearly $81,000, fueled by a wave of pro-crypto candidates winning office in the recent U.S. elections. This milestone marks a significant turning point in the cryptocurrency’s record-breaking run.
Futures Premiums Soar
Open interest in Bitcoin’s price surpassing $90,000 has skyrocketed to over $2.8 billion on the popular Deribit derivatives exchange, a clear indication that investors are betting big on the cryptocurrency’s continued momentum. Vetle Lunde, head of research at K33 Research, notes that the options market is heavily biased towards continued growth, with call options trading at a premium to puts.
CME Derivatives Exchange Sees Surge in Premiums
The CME derivatives exchange, a popular platform for institutions in the U.S. to make bets on the future price of Bitcoin, has seen premiums for Ether and Bitcoin average 14.5% and 14%, respectively. This marks a significant deviation from the pre-election premiums, which hovered around 7%.
Perpetual Swaps See Substantial Growth
The early stages of Bitcoin’s push higher coincided with substantial growth in open interest in perpetual swaps, allowing buyers to speculate on price movements without a set expiration date. However, liquidity in crypto markets on weekends tends to be poorer than during weekdays, leading to overreactions and retracements once markets reopen.
Election Promises and Monetary Policy
President-elect Donald Trump’s campaign promises to turn the United States into the “crypto capital of the planet” and launch a national crypto stockpile have injected optimism into the market. The easing of monetary policy, including the Federal Reserve’s recent interest rate cut, is also expected to boost crypto prices.
Crypto Market Surges
The crypto market has broadly surged since the election results, with Ether rising 30% in the last seven days and Solana’s market cap topping $100 billion. The total market cap of all spot Bitcoin ETFs has surpassed $80 billion, with spot funds adding $2.3 billion in just three trading days.
Fintech Companies Tied to Crypto See Gains
Companies tied to crypto, such as Coinbase and Robinhood, have seen significant gains since the election. Coinbase shares jumped 48% for the week, their strongest performance since January 2023, while Robinhood rose 27%. Both companies have been actively involved in supporting pro-crypto candidates and advocating for favorable regulations.
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