Jakub Porzycki | Null Photo | Getty Images
Bitcoin Futures premiums soared, reaching an all-time high of nearly $81,000. This is a clear sign that investors believe the world’s largest cryptocurrency’s record run is poised for further gains on the back of a growing pro-crypto movement in the US election. . candidate wins power.
Bitcoin price open interest of more than $90,000 has risen to more than $2.8 billion on the popular Deribit exchange, one of the few crypto-native platforms offering futures trading. Deribit covers most of the offshore options market.
“Trends in the options market are heavily biased toward continuation of momentum, with call options trading at a premium to puts, and out-of-the-money calls,” Vettle Runde, head of research at K33 Research, told CNBC. “Open interest is increasing.”
A call option gives the buyer the right to buy shares of the underlying asset at a specific price for a specified period of time. When you buy a call option, you are betting that the price of an asset will rise. When you purchase a put option, you are betting that the price of an asset will fall.
The CME Derivatives Exchange offers Bitcoin futures contracts, a popular way for U.S. financial institutions to bet on the future price of Bitcoin. Verde told CNBC on Friday that CME’s premiums are ether Bitcoin averaged 14.5% and 14%, respectively. Verde said that ahead of the election, those premiums remained at 7% and had hovered just below 10% for much of the past six months.
“The recent spike is a significant departure that underscores the bullish trend of late,” he added, noting that yields have more or less stabilized in double digits after the election results became known. pointed out.
“Alongside increased leverage, we have seen for the first time any meaningful rise in offshore derivatives yields, indicating that this movement is being driven by determined risk-takers taking positions for further upside. “It shows that,” Verde said.
Bitcoin’s early rise coincided with a significant increase in open interest in perpetual swaps, contracts that allow buyers to speculate on the direction of the price without a set expiration date.
However, according to Verde, because neither CME futures nor ETFs can be traded, the liquidity of the crypto market on weekends is typically less than on weekdays, leading to overreactions and large rebounds when the market reopens. There is a tendency.
President-elect Donald Trump promised during his campaign to turn the United States into the “crypto capital of the planet.” His multiple pledges to the crypto community include starting a national crypto stockpile of more than $16 billion in Bitcoin, which the U.S. government has accumulated through asset seizures, and lowering interest rates. Easing monetary policy usually goes hand in hand with higher crypto prices, as it becomes cheaper to borrow money.
The Federal Reserve System, which guides the country’s monetary policy, sets the standard interest rate. It also operates independently of the White House by design. The Fed approved its second consecutive interest rate cut on Thursday.
The virtual currency market generally rose over the weekend on the back of the election results and the Federal Reserve’s unanimous decision to lower the benchmark interest rate again. ether Outpacing Bitcoin’s rise, it has risen 30% in the past 7 days, Solana’s On Sunday, its market capitalization exceeded $100 billion.
The market cap of all Spot Bitcoin ETFs is now over $80 billion, with the total market cap of spot funds increasing by $2.3 billion in the past three business days alone.
In the fintech industry, companies related to cryptocurrencies rose to the top after candidates funded by the cryptocurrency industry won top and bottom races on the ballot.
Coinbase stock rose 48% this week, marking its best performance since January 2023. Coinbase was one of the largest corporate donors during the campaign, contributing more than $75 million to Fair Shake and its affiliated PAC, including $25 million in new support. Cryptocurrency promotion super PAC for mid-term 2026.
President Trump has vowed to fire SEC Chairman Gary Gensler, which could bode well for companies like Coinbase, which is battling regulators in court over alleged securities crimes.
“Tuesday night was certainly a big night for crypto and crypto voters,” Coinbase Chief Legal Officer Paul Grewal said in an interview. “We are going to have the most pro-crypto Congress ever, and Coinbase played a role in all of that.”
Robinhood, which allows users to buy and sell a number of digital currencies, rose 27% for the week. The online brokerage firm received a wells notice from the SEC in May, which often precedes formal charges.
The general manager of Robinhood’s cryptocurrency division told CNBC that Robinhood’s goal is to help people work within the administration.
“If you think about cryptocurrencies, they are moving at a very fast pace. It’s a thing,” he said. “We want to help policymakers understand that and promote appropriate protections for their customers.”
