Record-breaking Bitcoin rally set to gain momentum
Bitcoin triggered by Donald Trump's victory in the US presidential election may just be getting started.
«We saw an immediate risk-on rotation across derivatives amidst the surge,» said Vetle Lunde, head of research at K33 Research. «CME's basis has surged from 7% yesterday to highs above 15% today, while perps have moved from trading below the spot market to its largest premiums to the spot market since March.»
Bitcoin futures contracts on the CME derivatives exchange are among the most popular ways for the US-based institutional investors to capture upside in a bull market. The so-called basis, which is the difference between the spot market price and the price of future contracts, was muted in recent days before the election. Meanwhile, the perpetual futures contracts, which are among the most popular options for offshore investors, are seeing more interest with a higher funding rate, indicating rising demand for leverage in that market.
Bitcoin broke $75,000 for the first time amid expectations that a second Trump presidency will bring more crypto-friendly policies and regulation. The Bitcoin options market had set sight on $80,000 for expiries in late November even before yesterday's vote.
Did you Know?
The world of cryptocurrencies is
Read more on economictimes.indiatimes.com
